Will I qualify for a chase loan modification?

[sparkle]

Bought a condominium at the begining of 2008, will chase potentially approve a loan modification for:

Original loan amount: $159,000
Principal balance: $155,700
6.875%

Same units are now selling for $42,000. I owe $100,000 more than the current market value.

Recently a month and a half ago, my tenant moved out and damaged the unit significantly (gun shots). Repairs cost over $1,200. Therefore, I was unable to make the payment last month of $1,340 but I paid the HOA at $160.

Finances:
Chase mortgage & HOA monthly= $1,500
Additional Monthly expenses (inc. car, insurance, living expenses, second home mortgage, etc)=$1,350
Savings= 4,500 (but I owe last month and now this month is due= $2,800) also need to save for taxes at the end of the year
Salary: $2,700 monthly

Upon reading the chase loan modification forms, I noted that the property must be your primary home to be considered even if in the past it was rented. Is this correct? Did I interpret the information correctly?

Is chase considering prinipal amount reductions? or only interest rate reductions? What is the average time before chase notifies of a modification approval/denial? Is it a good idea to pay a partial monthly payment (maybe 1/2 or 1/3 of my payment)? Or make last month's payment this month and continue being 30 days late? Or is it better to wait after the paperwork is reviewed by chase? Can I avoid foreclosure proceedings thru one of the methods above?

Please help.

Thank you.

[sparkle]

Just to clarify my post... my tenant & condo unit were victim of a gun shot drive by.

[Evan Bedard]

Hi sparkle welcome and thank you for joining.

Upon reading the chase loan modification forms, I noted that the property must be your primary home to be considered even if in the past it was rented. Is this correct? Did I interpret the information correctly?

Is chase considering prinipal amount reductions? or only interest rate reductions? What is the average time before chase notifies of a modification approval/denial? Is it a good idea to pay a partial monthly payment (maybe 1/2 or 1/3 of my payment)? Or make last month's payment this month and continue being 30 days late? Or is it better to wait after the paperwork is reviewed by chase? Can I avoid foreclosure proceedings thru one of the methods above?

It is possible to get a modification on a rental property but it will be much more difficult. Under Obamas new programs the property will not qualify because its an investment, but it may for a regular modification. Sorry but no lenders are offering principle reductions right now. I have maybe seen 3 in the past two years.. the time it takes to get either an approval or denial will vary case to case. The process can take anywhere from 1-6 months.. We are also finding it much harder to get a mod while your loan is current as well. Also to add, most of the time you can postpone a foreclosure sale date while your waiting for an answer for the modification..