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Who will this help?

J.P. Morgan Chase has announced that they will be actively seeking homeowners who are in need of a Loan Modification! In fact they are going to open 24 regional branches advocating for the needy! This not only is designed to address our nation's greatest crisis, but it will open over 500 new jobs for the company. Chase appears to be the front runner to what appears to be a long road to recovery. They also have announced that they are going to place a freeze on foreclosures during this 90 day period. It is not known whether that will include those already in foreclosure or those approaching foreclosure. This plan has a distinct similarity to a certain Presidential Candidate!?

I'd love to hear your thoughts on how effective this approach will be; and, if you were the President of Chase, what more would you do for your borrowers (if any)?

Posted by Clark Garrison, "LOAN MODIFICATIONS" on 11/03/2008 05:16 PM

Comments (8)

jp morgan chase, short sales, taylor one inc, foreclosure, bailout program, atlanta foreclosure, atlanta, atlanta real estate

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8 Comments on Who will this help?

NOV

2008

Clark.. this sounds like a interesting concept. I will watch and see how this plays out.

NOV

2008

Clark,

This is a way for Chase to see what it is that they have within the loans they inherited from WAMU. If they can salvage some loans with modifications then it will be better for their bottom line. I don't see this being a "helping hand" to the folks that need it the most. Let's see how it plays out in the long term

This sounds great. I can't wait to see how it plays out.

NOV

2008

I'll just play a wait and see with this one also.

If I were the CEO- I'd just convert rates to fixed and extend term to 40 years and make payments easier to handle, but I would NOT be forgiving any of the actual debt. Maybe forgive past due penalties,but not principal debt.

NOV

2008

Chase is a double edged sword, like most of the banks. They are likely acting as a servicer for the loans that they want to modify which means that they are only a middle man between them and the investor. It sounds like a good idea but they are not working for the distressed homeowners its about their investors bottom line that concerns them. I'm also concerned about the robots who have 2 days training and no experience who will be doing these modiications.

If this 90 day moritorium works, great! If not, it could blow up in therie faces and cause more problems than they already have. We'll see.

I agree with Tammy. If the borrower can not afford the payment with fixed at 40 years, then they really can't afford the property.

NOV

2008

I'm really curious why we haven't heard more about this? The how's and when's of the whole story. Thanks Clark for bringing it to our attention here in AR.

Your Raleigh Realtors

It seems this plan, and most of the other that have been announced, are just a band-aid and will not really help in the long term. It seems the modifications will be temporary and span from 3 to 5 years. It believe it is a way to spread out their loses. I'd like to see something that will help the market on a permanent basis and not just a series of stop gap measures. This is the same basic deal as the HopeNow program and the latest Fannie & Freddie program.

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