JPMorgan Chase has stepped up its foreclosure help efforts as it announced last 31st of October its plan to address the foreclosure problem being experienced by the nation through freezing JP Morgan Chase foreclosures for the coming two months and restructuring loans.
The report of Business Week said that JPMorgan Chase wishes to restructure loan terms, which affects 400,000 homeowners, amounting to $70 billion outstanding loans. Some moves include changes in loan terms before default, removal of ineffective "pay option" loans, and joining to their staff 300 more loan counselors.
JP Morgan Chase considers it as their responsibility to give additional help to families. In fact, it has enforced the $700 billion bailout plan of the government and has made the first step in saving American homeowners burdened by the drooping economy.
This banking giant based in New York has come up with several modes of assistance to borrowers. One of these is the plan to eradicate very risky adjustable-rate mortgages, which lets borrowers postpone a part of their total monthly payments, taking back the difference to the original amount they owed.
A report also says that borrowers are often attracted to low-payment loans only to find themselves owing with even more what they originally have owed.
The study of First American CoreLogic, a research firm, provide that in the United States, out of five borrowers, at least one owes more than the real worth of a home.
JPMorgan Chase even goes more hands-on as they contact borrowers, giving them prequalified offers in the reduction of loan principals and interest rates. They also have plans of setting up new counseling centers for 24 regions for more personalized assistance in the property market with high rates.
Troubled borrowers across the nation are looking forward to such foreclosure help in order to allow them to keep their homes.