Chase: No Foreclosure for 3 Months

With both the government and non-profit organizations working hand in hand to curb foreclosure crisis, it is not surprising that lenders such as JP Morgan Chase has also decided to extend their help to distressed homeowners facing foreclosure. In the next 3 months, the New York-based company will temporarily stop foreclosure filings.

In addition to this, Chase will also be offering refinancing options to troubled borrowers, allowing them to enjoy more affordable mortgage terms. The other distressed homeowners will be able to receive assistance in the form of principal forbearance as well as interest-rate reductions.

There will also be the opening of 24 regional counseling centers that will house 300 counselors and 150 staff who will review troubled mortgages.

Based on their calculations, about 400,000 families – customers from Chase and Washington Mutual — and $70 billion worth of mortgage will benefit from the said program.

Lastly, Chase’s plan also includes the offering of discounts and in some cases, even donation of homes to various community groups and government institutions in order to increase the supply of more affordable homes.

Obviously, a lot of homeowners will be delighted by the decision of Chase to stop foreclosure, even if it is just for 90 days. For many, it could mean the difference between having a home and becoming homeless.

Distressed homeowners should take advantage of this opportunity by making sure that they speak with their lender about possible foreclosure alternatives like repayment, forbearance and loan modification. Most lenders are now more willing to help out troubled borrowers especially those who are trying very hard to avoid foreclosure.

If homeowners are having a difficult time with the negotiations, they could always ask for the assistance of HUD-approved foreclosure counselors. These counselors could act as mediators and will be able to provide you with important information that could help you make the right decision.

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