It is worth it to apply. Even if Chase ultimately forecloses, at the least it could delay the process for a while. No one can predict what the banks will do. They are under attack, have entered into a settlement with the government, that may require changes in their behavior. Unless you stay in the game in these changing times, you might miss out on a benefit that might otherwise be available to you.
You should apply for the loan modification but not for the purposes of stalling the foreclosure. If you can do a modification that will be better for your credit in the long term than a foreclosure will be. There are a lot of programs out there for people in your situation and you should explore them as alternatives. You should not shut out any options available to you at this time. Good luck to you.
Under HAMP guidelines and regulations, if a HAMP loan modification application is submitted, the lender is not supposed to initiate foreclosure proceedings until the application has been approved and the homeowner is given a trial loan modification or a denial letter has been issued.
I would highly recommend speaking with a Pennsylvania attorney to represent you in preparing a loan modification application. Do not consult with an out-of-state modification company as there are several questionable loan modification companies in states such as Florida, California, and New York.
Please also note that if your original mortgage balance is less than $221,540, you are also required to be given an Act 6 Notice prior to the commencement of a foreclosure action. The Act 6 notice essentially informs you that the loan is in default and that the lender intends to file a foreclosure action within 30 days unless the arrears is cured. If your original mortgage is less than $221,540, a foreclosure cannot be filed unless you are sent this notice by certified mail and 30 days have passed.
It would be very wise to start the loan modification process now.