Bank to Help Homeowners Prevent Repo Homes

by on Foreclosure Help

JPMorgan Chase, a global financial services company, has intensified its campaign to help distressed homeowners prevent repo homes.

It has decided to place servicers in its various mortgage centers and branches to work with housing counselors in helping troubled homeowners prevent repo homes.

The company said that opening homeownership centers is its way of helping ease the process of repo homes prevention. Distressed homeowners are not only having difficulty meeting their monthly mortgage payment but also of reaching their mortgage loan providers.

Most often troubled homeowners who called toll-free telephone numbers would be kept on hold for several hours, and then would get confused and lost in the plethora of voicemails and departments.
JPMorgan assigned servicers to assist delinquent homeowners in modifying their loans to make them affordable.

Currently, the bank has opened 24 homeownership centers in areas populated with repo homes, such as Glendale, California and Paramus, New Jersey.

Bank servicers are tasked to handle mortgage loans serviced by Washington Mutual, JPMorgan Chase and the EMC unit of Bear Stearns. Both Washington Mutual and Bear Stearns were acquired by JPMorgan Chase in 2008.

At the Paramus homeownership center, there are seven servicing representatives from JPMorgan Chase who worked with local housing counselors to simplify the loan modification process to prevent repo homes.

Loan modification applications submitted by distressed borrowers at homeownership centers would be reviewed at JPMorgan Chase’s central processing division. Decisions on loan modification applications are expected to be given out in less than three weeks.

Representatives of homeownership centers are also expected to decide on loan modifications applications under President Barack Obama’s repo homes prevention program.

According to homeownership centers representatives, they do not expect to handle many applications from walk-in homeowners. They added that majority of applications they received were from municipal housing agencies, bank branch referrals and non-profit organizations.

While housing counselors praised JPMorgan Chase‘s efforts, they are not fully convinced that the program will increase modifications. They said that the real problem is not access to mortgage providers but the willingness of servicers to make adjustments on loan terms.

However, housing counselors conceded that homeownership centers would be a great help in making their jobs of preventing foreclosures easier.

They pointed out that working with servicers’ local representatives would really help in cutting down the waiting time of distressed homeowners.

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