JP Morgan Chase Offers Loan Modifications To Investors

Fearing widespread mortgage default on $1.1 trillion of investor-owned properties, JP Morgan Chase has launched a new loan modification program aimed at keeping landlords paying their debt service.

JP Morgan Chase's loan modification program - dubbed The Way Forward - piggybacks off the financial institution's efforts implemented late last year geared toward homeowners who are primary users.

"Over the past two years, Chase has helped 330,000 families avoid foreclosure," according to a company statement. "And now, by addressing investor-owned loans, we will help even more Americans keep the homes they've worked so hard to buy."

As part of the initiative, investors can utilize JP Morgan Chase's new regional centers around the country housing a team of 2,500 loan counselors who have a number of mortgage modification programs to offer qualified borrowers.

"Don't underestimate the significance of JP Morgan Chase's decision to offer loan modifications to borrowers of investor-owned properties," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consultancy Condo Vultures® LLC. "Many industry watchers had thought that lenders would work with homeowners on loan modifications but never investors."

"The fact that JP Morgan Chase is willing to do so could signal that the bank's future projections as per the default rates on mortgages are more dismal than many had thought."

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter's blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM .

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