For the next 90 days, JPMorgan Chase will not put any new homes into foreclosure. JP Morgan, the banking behemoth, acquired mortgage lender Washington Mutual on Sept. 25.
The combined company is hoping to modify the terms for about 400,000 homeowners, which will equate to $70 billion in loan modifications. Among the steps it is taking to provide assistance include:
JPMorgan Chase is reviewing its entire mortgage portfolio to determine which homeowners need help and may be in trouble. They have also opened Homeownership Centers across the nation. The company will eliminate so called pay-option ARMs, which are a controversial type of adjustable-rate mortgage that allowed borrowers to defer part of their monthly mortgage bills and allowed them to roll the difference onto the principal they owed. These borrowers were oftentimes enticed to take such risky loans by the lower payments. However, they now find themselves owing even more mortgage debt on their dwellings, even as their property values have declined. Research firm First American CoreLogic conducted a study that found nearly one in five borrowers in the U.S. owes more on a home than it is worth.
JPMorgan Chase will also proactively contact borrowers with pre qualified offers in order to reduce their interest rates or loan principals. They will also set up 24 new regional mortgage counseling centers to provide face-to-face help to borrowers who need it in those markets with high delinquency rates. Many borrowers in trouble say they need help reaching lenders when they want to re-negotiate loans and that it is difficult to determine who to talk to. Many borrowers say that they have to stop making payments to get a bank's attention. JP Morgan reaching out proactively to borrowers to offer assistance should stop that from occurring.
Among other options, some of the loan modifications that the bank will offer to borrowers will include giving them affordable 30-year, fixed-rate loans. They will also offer a conversion of their loan for 10 years to an interest-only loan and principal deferment, in which a large portion of the mortgage debt is forgiven for a term of years or until the home is sold. Find all the JP Morgan Chase mortgage assistance programs.
Read more on how mortgage counselors can help you with paying your mortgage debt. The bottom line is that if you need mortgage help, there are various resources and programs available to you, and JP Morgan Chase will do what they can to assist. Contact them to learn more and ask about how they can assist you.
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