If you don't have any equity or you owe a LOT more than your home is currently worth, Chase will view you as being a HUGE risk for re-default in the future. If the banks WERE really helping people obtain viable loan modifications that make sense for the life of the loan, we wouldn't have so many foreclosures & short sales going on out there.
I know many people who have income, who don't file Chp 7, who just need their payment reduced & they're getting denied left & right. The bottom line is the bank would rather write off the loss, than give you a new payment & risk your re-defaulting in the future.
If you were a new borrower, 5mos out of a Chp 7 filing, you wouldn't be able to qualify for a loan because you're a major risk to any lender.
If you're terribly upside down, you owe more than 30-50% of what your home is worth, you should seriously consider a short sale. A deed in lieu is the same as a foreclosure & after Dec. 13th you won't be able to get another Fannie mae backed loan for 7yrs (up from 3-4yrs), it can be negotiated that the bank can't come after you in the future for a deficiency judgment & you'll be protected by the Mortgage Debt Forgiveness Act regarding owing the IRS any income tax on the negative balance.
If you have any questions or concerns feel free to email me directly.
The goal of the HAMP program is to reduce payments on avg. by only $500 for a short term period of 3-5yrs. Chase will NOT reduce your principal balance down to current Fair Market Value for the LIFE of your loan.