JPMorgan Chase & Co. (JPM) the largest U.S. bank by market value, plans to offer $110 billion in loan modifications of mortgages with plans to expand its modification program within the next 90 days to help 400,000 homeowners avoid foreclosure.
In addition, Chase plans to forgo foreclosure proceedings on all real-estate loans while the changes are implemented in the next 90 days
The loan modificationoffer is also extended to clients of Washington Mutual Inc. (WAMU), who JPMorgan purchased this last month. Loan modifications may include interest-rate or principal reductions and for owner-occupied mortgages for homeowners who show a willingness to pay.
Chase says they plan to establish 24 regional mortgage counseling centers and hire more loan counselors and offer prequalified loan modifications to borrowers to provide face-to- face help in areas with high foreclosure rates.
The new program is expected to assist approximately 400,000 families with about $70 billion in mortgages.
Chase said they will start a new process to independently review each loan before moving it into the foreclosure process and will temporarily suspend foreclosures while the changes are implemented.
The loan modification program will include pay-option ARM’s that were when it acquired Bear Stearns and WaMu. JPMorgan said all modification offers will eliminate negative amortization and are expected to be more affordable for borrowers in the long term.
{ 20 comments… read them below or add one }
I am so frustrated by the loan modification process. We are stuck at a 11.99% rate and were just assessed an additional escrow despite our financial hardships. We applied for our loan modification on December 18, 2008. Chase stated that they had everything they needed and we just had to show 3 months of good faith payments. We have done that which was very hard to do. Now Chase stated that all loan modifications are “frozen” due to the new federal guidelines and we may have to make another payment before we hear anything. How is this helping the consumer in financially hard times?
WE HAVE BEEN MAKING OUR PAYMENTS ON TIME AND WITHIN THE GRACE PERIOD, HOWEVER, IN FEB. OUR LOAN WAS PLACED IN MODIFICATION AND OUR PAYMENT WAS APPLIED TO A SUSPENDED ACCT. WHILE OUR LOAN IS BEING REVIEWED FOR MODIFICATION. CHASE HAS CHARGED US TWO LATE FEES SINCE FEB. BECAUSE THEY PLACED OUR PAYMENT IN SUSPENSION NOT BECAUSE WE WERE LATE. WE CANNOT MAKE PAYMENTS ONLINE OR BY PHONE WHILE THE LOAN IS BEING MODIFIED.
WE HAD A CROOKED MORTGAGE BROKER THAT RAKED US OVER THE COALS BY PADDING HIS POCKETS BY GIVING US A HIGH INTEREST RATE EVEN THOUGH MY CREDIT SCORES WERE GOOD. THIS MORTGAGE BROKER ALSO STOLE OUR ESCOW AT CLOSING BY CALLING THE TITLE COMPANY AND FINDING OUT HOW MUCH WE WERE GOING TO GET AT CLOSING. HE MADE SURE HE MADE OUT LIKE A FAT RAT BY NEGOTIATING OUR INTEREST RATE WITH CHASE AND BY STEALING OUR ESCROW. CONGRESS SHOULD HAVE PASSED LAWS A LONG TIME AGO IN REGARDS TO PROTECTING THE CITIZENS OF THIS COUNTRY AGAINST MORTGAGE COMPANIES/BANKS AND BROKERS. WE ARE IN DEEP DOO BECAUSE OF ALL THE CROOKS. IS IT NOT TIME FOR US TO FIGHT BACK?
I AM MAD AS HELL AT THE WHOLE SITUATION WHICH IS A DIRECT REFLECTION OF NOONE REGULATING THE BANKING INDUSTRY…
HIGH TREASON COMES TO MIND!
This is the biggest fraud and hoax on the part of Chase and the government. I have not heard back anything in two months since calling for a loan modification Evey time I call chase, they put me on hold for hours to the point I get frustrated and hang up…
It’s becoming so dificult to come up with the monthly payments. My sense is, they are PURPOSELY sitting on this to push you into foreclosure so they will eventually collect on late fees and legal fees and in the end might not even modify the loan.
Thanks OBAMA! Way to go!
We have good credit. we applied for loan modification on feb.12. every time i call they take a long time to answer and then will give different names of ‘negotiators.’ they gave us telephone number of one negotiator and said you call him. there was no answer there. they said it takes one month, then two months, now ninety days. we are having trouble paying our adjustable arm loan. we were told that that is the first one they are taking care. no reply so far on an official basis. just talk. what hapapened to the counseling centers around the country? why this delay? george
To sks… how the hell is your mortgage problems Obama’s fault? You took the loan that you did not understand under rules created by a whole other administration. Where is your fault in all this?
we have been trying to get help from jp morgan chase with our mortgage………..yeah right! We have followed all their requests and can not get anyone to help us. Applied for the loan modification..still waiting mean while they are charging us late fees did you all know that if you go into forclosure they can wack you with fees up to 10,000 dollars. Do we all now understand why they aren’t helping us??Who can we report them to?
I know everyone is frustrated and scared about loosing their home. Can you imagine all the calls they are getting I believe they are overwhelmed. Just be patient and don’t worry about something you can not control. I personally have heard success stories from people I know that have gotten a loam modification from Chase. Pray and be hopeful.
I believe they are doing what they can.
I’ve been working on a load mod. since Jan 09. with WAMU in March I was told that all of my paperwork had to be resubmitted due to the new Obama plan. Today I was informed that b/c I only have one 30dy late I dont qualify for their Obama package, I needed at least a 60dy late. Now my file is being transferred to a “management” dept. to go over. They could not tell me what that meant. Does anyone???
I spoke to your office at 800-446-8939 to try and answer a letter signed by Justin Domenicucci regarding a loan modification and was told to mail the documentation using the internet…How do I do it?, Where are the forms?. Please reply as soon as posible! Thanks Severo Ojea.
it’s the end of the world. What do you expect?
don’t look for help from chase they will keep telling you it’s going to take time and then when it is time for the sale of your home they will tell I’m sorry which they are tell you a lie I have been getting that for months now a I’m 6 days away from the sale of my home and do you think they are going to help me NO!!! they are going to tell you they need money to modify your loan and that is in the amount of your morgage payment people are out of work trying to make it and they want you to come up with this or that knowing you are already having problems.JP Morgan Chase say they are doing everying they can but they are not. So don’t trust anything they tell you because if they were working to save poeples home they would do more. Poeple remember one thing when they do modify your loan if you are behind they will raise your payment to where you can not handle it and they will take your home I know this because I know poeple this has already happend to.So if you think Chase is out to help you they are out to help them self and make a profit for them self.So what are the real poeple going to do. the ones that make the econmey. We are all going to get pissed becasue they are only helping the ones that they want to help and to hell with every one else. People don’t feel sorry for the ones that are working the call center they work on a commision so if they get your money that puts money in there pocket. Now I have reported them to the commision of banking and they are investagating them now the way they are doing bussiness and now I’m waiting again so let see what happens.
Chase has been no help, triple dipping is what it seems thay are up to. They lost the original money, took the federal money and now will take our homes under the guise of a mortgage modification. i submitted my modification over a month ago and called ofr staus, i get the run around the normal mortgage line cannot help me any longer because i applied ofr a modification and they transfer me to that number, those folks cannot tell me what the process is or where i am in the prooscess and tell me to call the normal mort #, who transfers me to the modification folks who do not know where or what is going on. So much for president Obama’s great helpful plan! Yes he is at fault, he enacted a law for a make homes affordable, and yet, we who have legitamate issues, loss of job, i lost mine in end of October 2008, health issues, i had to get a pacemaker installed toi stay alive in January 2009 and loss of income. Seem all my savings are gon, all my 401k money has been spent to keep may mortgae and all bills current. NOW all I have is $47.00 in savings and a promise of help coming with no assurance that anything is happening for the good of my home and morgage. So how did obama help? how did any of the buy out help? tell me, it helped the pigs in greed that’s what and who it helped. Folks are still losing thier homes today and will tomorrow. This is all crap!
WTF?
and how is any of this OBAMA’s fault? He is picking up the mess left behind by you know who! People must take responsibility for their actions…
i need lower monthlly payments and i want to work with a reputable company such as jp morgan chase. my phone number is 314-249-3782.
Hello Tribe,
I too am with Chase & I oddly enough, I am having the same problems.
I owe $700,000 on a home zillow says is worth $313.
My business which made us several million dollars, in this millennium alone, is now closed due to their collapse of the credit sector.
I applied for a mortgage mod on Feb 9th. I was told to due my taxes for ‘08. They sent me a paper to sign for a 1.9% loan for 3 years capping at 4.9% in 5 years.
When I completed my taxes, they told me: “too late.”
Then, Chase kept losing my papers, so I asked to meet with a Banker face to face.
They sent me to Chase an hour & a half from my home.
That loan modifier told me it would be 45 days.
He submitted the paperwork on 4.17.
Since then I have been getting about 3 calls a day from Wa Mu harassing me.
The loan modifier never returns my calls.
Now they are trying to tell everyone that the economy is better so that all of us waiting for our loan mods are going to get the shaft.
As of next month, I am going to hire an attorney & do the same thing that GM, Chrysler, Lehman, etc. have been forced to do.
I have 2 injuries from 2 car crashes, & have let Chase know that.
In a BK, if you are injured, they cannot take your home away from you.
Also, you will get a chance to look at these crooks, face to face.
I am ready to take on the 800 lb gorilla, again.
I am an Indie Filmaker & can work in France anytime I need to & give up my citizen ship. This give me the courage to tell these people that they really are not human beings, but monsters.
I am giving them back another home that we bought & losing $100,000 approx. on it.
Do you think they care?
I have found 2 honest lawyers, that work in S. California only.
If anyone needs any help in this, call me.
I can help you stop the harassing phone calls that they make 3 times a day, asking you the same questions.
Hello Chase, All of us have rights.
You may think that you are the Gestapo, but you are not.
I am done with you lies.
Sincerely,
Bonnie Ember
I’ve tried dealing with Chase for months and can’t find anyone with any knowledge of the modification program or who (in their call centers) even speaks/understands english well enough for me to explain my situation. I finally submitted all the necessary information to Brothers Redevelopment which supposidly is funded by the State of Colorado to help us keep our homes, but it took them two months just to get a fax number at Chase to send the information to.
Yeah, where do we go for proper action! While big corporations are lining there own pockets, we’re still in danger of forclosure because we don’t know who can help us. Our mortgage lenders are surely not the people that care!!!! Is there a direct line at the White House that will help us???
Wake up people! This mortgage scam is bigger than any 1 administration. Bush and Obama are just puppets of a much larger entity. Everything that is happening is to prepare America (and the world) for the NWO. Think about it for a second, the world is in a financial crisis. More and more people are looking to the government to solve their problems. All of this falling into place so the government can have more control of your life! I have news for you, government assistance DOES NOT WORK. It is a crutch so that people become dependent on the government. This iS AMERICA people!! What happened to hard work and depending on the strength of the American people!!! The only way out of this finacial mess is for the American people to come together and take back our country!! So stop blaming the crooked mortgage brokers/lenders for everything. Ultimately we have to be accountable for our own actions and bad decisions. I am in the same boat as everyone else but I am not going to blame others for what is ultimately my responsibility.
Everyone-
Writing here is a waist of time…..Write every Senator in your state
this week about your problems with Chase also write OCC, HUD, Fair Lending Act and Acorn. Maybe if enough of us elevate the reality of how Chase is delinquent in servicing our loans in Good Faith and Fair Dealings (Respa) finally they will wake up and really help.
Chase / WAMU will take forever to process the loan and in doing so we will lose our homes. The leaders of this country are trying to build Afghanistan, Iraq etc whereas we here in USA are losing our homes and becoming homeless…why spend so much money for some other country when we are suffering here in our own country where we work hard, pay taxes etc. Its about time to stand up together and fight back with this bullshit of LOAN MODIFICATION PROGRAM where people dont talk or care to return phone calls. Wheres all the funds going that have been given to help home owners with financial crisis…i am sure someone is sitting with these fat checks . I pray for all my brothers and sisters during this hardship and hope GOD will help us soon to get out of this mess.
AMEN!!