A new loan modification program for Chase, Washington Mutual (WaMu), and EMC Mortgage was announced by the CEO of retail financial services for JPMorgan Chase & Co (Charlie Scharf) in a press release on October 31st. JPMorgan Chase & Co is the parent company for Chase, and recently acquired Washington Mutual and EMC Mortgage (formerly owned by Bear Stearns). The loan modification program will apply primarily to owner-occupied properties.
The company has already modified $40 billion in 2007, aiding a quarter of a million customers. They say their plan will help an additional 400,000 customers avoid foreclosure on an estimated $70 billion in loans over the next few years.
90 Day Foreclosure Moratorium:
They will implement the plan over the next 90 days, and have issued a foreclosure moratorium for owner-occupied properties during this time.
The types of modifications being planned depend on which loan product the customer possesses. Under consideration are rate reductions, an extension of the loan term (time length) or in some cases a complete replacement of the loan type.
ARMs from WaMu and EMC:
Chase has stated that they will offer options for customers with pay-option adjustable-rate mortgages (ARMs) from WaMu or EMC that will eliminate negative amortization and will be more affordable for borrowers in the long term.
The reference links below include the press release from JPMorgan Chase & Co, and the existing loan modification web-pages at Chase, WaMu and EMC. Keep in mind that the details of the planned program may not be available until the end of January 2009.
Other Mortgage Modification Programs:
Bank of America and Countrywide have already announced a loan modification program. Also, federal government has set up a mortgage modification program called Hope for Homeowners which went into effect on October 8, 2008. Unfortunately, many homeowners have found that they do not qualify for the Hope for Homeowners program, since the terms are somewhat restrictive. Read more in these previous posts.
Assistance for Distressed Homeowners:
If you are having trouble making your mortgage payments, free counseling is available from the HOPE NOW Hotline, or from local HUD approved counselors. You can also contact local HUD-Approved Counseling Agencies for a free consultation. More importantly, be sure to contact your mortgage servicer (the company to whom you send your payments) to find out what programs they may have in place. You can find contact information for many mortgage servicing companies on the Hope Now website. Links are provided in the references section below.
References:
Other Mortgage Modification Programs: Related Posts
JPMorgan Chase Loan Modification Program
Chase Foreclosure Assistance Information
Washington Mutual (WaMu) Mortgage and Foreclosure Assistance
EMC Foreclosure Prevention and Loan Modification
Free Mortgage Counseling from the HOPE NOW Hotline:
Free Mortgage Counseling from local HUD-Approved Counseling Agencies (listed by state).
List of Mortgage Servicers
Tags: Chase, EMC, foreclosure moratorium, foreclosure relief, Hope Now, mortgage modification, mortgages, WaMu, Washington Mutual