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Chase Bank Will Stop Foreclosures for 90 Days

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Services for Real Estate Pros with Homes Plus Realty, llc, 3095874

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

Comments(15)

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Robert Calistri
Homes Plus Realty, llc, - Valrico, FL
Broker Of Record Services

Yes , but will this make a number of homeowners take their homes off the market?

Bob

Nov 03, 2008 11:21 AM
Jim Treanor
Treanor Real Estate - Southington, CT
CT RE Broker ABR CDPE CRS GRI

I have been working on a short sale with WAMU now for about 3 months, does this mean we have to wait another 90 days?  I represent the buyer and from what I have heard the seller is sick and unable to work which is the reason he is behind. 

Nov 03, 2008 11:24 AM
Robert Calistri
Homes Plus Realty, llc, - Valrico, FL
Broker Of Record Services

I don't know that answer, but that could be the case.
Bob

Nov 03, 2008 11:25 AM
Celina Gleason
AgentOwned Realty - Manning, SC

I will believe all this when I see it.  I'm usually the optimist, and I certainly hope that they will do this and these folks can stay in their homes.  I would much rather lose a listing and see the folks stay.

Nov 03, 2008 11:32 AM
Robert Calistri
Homes Plus Realty, llc, - Valrico, FL
Broker Of Record Services

Celina,

The source was the Florida Business Journal, quoting a Chase Officer.

Bob

Nov 03, 2008 11:35 AM
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

Thanks for sharing this info - hopefully, it will be something to help people who need it!

Nov 03, 2008 11:48 AM
Robert Calistri
Homes Plus Realty, llc, - Valrico, FL
Broker Of Record Services

Norma

Your right some people need the help.
BOB

Nov 03, 2008 11:50 AM
Jonathan Osman
Jonathan and Associates, Inc - Charlotte, NC
Charlotte House Hunter Group

Great info.  I've heard that banks are going to be doing a lot more loan modifications.  Here's proof.

Nov 03, 2008 11:54 AM
Robert Calistri
Homes Plus Realty, llc, - Valrico, FL
Broker Of Record Services

Jonathan

But it also means that a lot of Short Sales will go away.
Bob

Nov 03, 2008 11:57 AM
Reid Hayes
Above The Rim LLC - Dumfries, VA

I am sure that other banks are working on this too, and this will slow down the REOs, too little too late...

Nov 03, 2008 12:32 PM
Justin Ukaoma
Vizion KC - Kansas City, MO
Kansas City Real Estate Investments

I've heard about this starting to happen.  Apparently Bank Of America who bought out Countrywide has a similar plan ready to roll out.

Nov 03, 2008 12:34 PM
Robert Calistri
Homes Plus Realty, llc, - Valrico, FL
Broker Of Record Services

Hi Kenneth

Yea I think your right about the other banks.
Bob

Nov 03, 2008 12:38 PM
Robert Calistri
Homes Plus Realty, llc, - Valrico, FL
Broker Of Record Services

Justin,
So what's going to happen to the market?
Bob

Nov 03, 2008 12:39 PM
Steve Hewson
KW Commercial Real Estate, LLC - Denver - Denver, CO
Denver Metro Comnulll Real Estate

As real estate agents, most of us have been shaking our heads for sometime and wishing banks would do just this.  It's good to see a bank testing the waters.  If we can put an end to this foreclosure crisis it will give confidence to home buyers and the banks and those investing in the pooled mortgages.

Nov 03, 2008 01:45 PM
Robert Calistri
Homes Plus Realty, llc, - Valrico, FL
Broker Of Record Services

Steve,
Your are right about the market in general. The banks will bring back a good credit situation and perhaps buyers will come back into the market.
Bob

Nov 03, 2008 01:49 PM