Chase Bank Will Stop Foreclosures for 90 Days
Today I received an email which told that Chase Bank the owner now of Wamu has decided not to foreclose on any homes for the next 90 days, while it implements a plan to help borrowers stay in their homes. Chase will hire 300 loan counselors and 150 people to review mortgages before they are placed into foreclosure to ensure homeowners were offered modifications first. With the customers of the newly acquired Washington Mutual in the fold, Chase's program could help about 400,000 families with $70 billion in loans, the company said.
Chase will offer borrowers with payment option ARMs alternatives such as 30-year, fixed-rate loans with affordable payments, principal deferral and interest-only payments for 10 years. I believe that Chase is the first to put this plan into effect, but other banks will son follow.
The question is what effect will this have on the real estate market.
Bob Calistri, Broker
Real Estate Auctions, llc
www.realestateauctionsllc.com
bob@realestateauctionsllc.com
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