Upside Down Mortgage

Posts Tagged ‘chase’

Chase Loan Modification News

The Obama administration claimed that it is going to lend help to as much as 4 million homeowners to be able to make modifications to their loans. The Treasury Department claimed Over 200,000 of the said loan modifications are presented to date. This means that there are still millions waiting for their turn. This could also mean that if these trouble homeowners are not reached on time, more foreclosure news will be heard.

Deborah Sherman is one of those homeowners who are waiting for their turn on the loan modification. She applied for the government program in March 4, a day after it was announced.

Since then, all she heard from Chase, her loan servicer, is: the process could take up to 90 days. Until now, she is still waiting.

The experience of Sherman was also experienced by most other people. Back in June, the program started in a chaotically as a multitude of homeowners all across the country jammed phone lines, overwhelming the staff. Because of the confusion and delays regarding eligibility requirements, disappointments build up among homeowners and housing counselors.

During the latest press briefing, President Obama expressed his frustration with the said government program. He said that the mortgage program implemented helped a lot of people in mortgage modification, however it had not been keeping pace even a lot of foreclosures are already taking place. Because of that reason and due to the fact that a lot of complaints from the home owners are already attacking him, he was asking his staff to put into practice more forceful actions.

At a recent congressional hearing, the president's remarks were echoed by Elizabeth Warren, chairwoman of the Congressional Oversight Panel. Warren oversees the Treasury Department's response to the financial crisis. She also said that the program set off for a couple of weeks and they are now taking fast actions on it.

"I think it's important that the public realize they don't have to have missed a payment on their mortgage to get help. If they see that they have a problem ... they should get in touch with their servicer" says Warren.

A lot of homeowners have already applied for loan modifications with their respective servicers but are still getting the same response as Sherman and the waiting time takes longer than expected. As the processing time of these modification requests get longer and longer, most trouble homeowners result to giving up and making foreclosure news rise.

Frustrations towards the program were expressed also by several federal officials. They said, "People who are engaged in this program must need to perform better job so that expectations of the public will be met."

As long as these needs for loan modifications are met, we may expect to hear more foreclosure news as more and more troubled homeowners fail to salvage their properties.

About the Author:

For the latest foreclosure news or for other ms foreclosure advice or free resources stop by the best foreclosure news website.

Source - Homeowners Try To Hold On While Prevention Programs On Foreclosure Slowly Moves

LOAN MODIFICATION NEWS - Loan Repair Today - www.loanrepairtoday.com

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!

Loan Modification Jp Morgan Chase

Hope and optimism emanating from the announcement of the Obama Administration’s “Making Home Affordable” plan have been replaced by the cold reality that the program has gotten off to start deemed by industry watchers as “anemic”. After almost four months since President Obama first announced the $75 billion mortgage rescue effort, the administration continues to tweak the program in an attempt to reach its originally stated objective of saving up to 5 million homeowners from foreclosure. Standing between the anemic start and lofty goals of the program are four roadblocks:

1) Overloaded loan modification processors – While the specifics of the plan were released in the first week of March, lenders couldn’t start handling applications until systems were re-programmed and processors were brought up to speed, which took an additional four to six weeks. Processors were immediately buried with stacks of applications that had been accumulating during the conversion to the new guidelines. Participants in the process report that servicers are still digging out from the initial rush as applications continue to flood their desks. Troubled borrowers, many backed up against the possibility of foreclosure, have become increasingly frustrated to the point where they have abandoned the process to retain their own legal assistance.  JP Morgan Chase spokesman Tom Kelly recently said of the ramp-up, "It's an enormous task. We're moving quickly, although not as quickly as an individual might wish."

2) Investors – The massive sums of money that supported the real estate/mortgage boom came from investors on Wall Street, pensions, and other institutions. Servicers say those investors are now balking at some of the terms being presented when a loan needs to be modified. The net present value test, a little known aspect of the plan, allows for a calculation to determine whether the greater return for investors will be achieved via modification or foreclosure. In the modification versus foreclosure decision, investors have been threatening lawsuits against servicers when the servicers are deemed to not be acting in the best interests of their investors. The threatened legal action adds another layer to the home loan modification process and can draw out the approval process even more. The “safe harbor” bill recently passed by Congress was intended to alleviate that logjam by protecting servicers from investor lawsuits but it’s likely that lawsuits will arrive on the servicers doorsteps anyway, safe harbor or not.

3) Lenders – Lenders are caught in a three sided bind between the above mentioned borrowers/investors and their own capital structure. No longer required to mark their loans to market, they can carry the value of the loans in their own portfolios at values they can rationalize, whether factual or not. Loan modifications could generate reviews of portfolio values, and nobody wants to go there in the current environment.

4) Unemployment - According to John Taylor, head of the National Community Reinvestment Coalition, "Unemployment is becoming a bigger factor than almost anything." When sub-prime mortgages started blowing up it was attributed to the risks inherent in lending to lower quality borrowers. Increasing unemployment, in addition to taking down the lower quality borrowers, is now hitting prime mortgages. In fact, primes are now going into default at a much faster rate than sub-primes as previously solid borrowers are now being affected by the contracting economy.

Of the four roadblocks, the toughest barrier is unemployment due to the fact that, regardless of credit scores, if a homeowner doesn’t have a job a loan modification isn’t going to help. Short sales, cash for keys, or foreclosure become the next options. At that point every side of the three sided bind ends up on the losing end.

About the Author:

The Feldman Law Center is one of California’s top mortgage loan modification companies, providing excellent service to our clients and is completely focused on keeping everyone one of our clients in their homes. Visit us at feldmanlawcenter.com or call 800-527-8497. Loan Modification Company.

Source - Feldman Law Center - The Four Road Blocks That are Slowing Loan Modifications

JP Morgan Chase at Foreclosure Roundtable

Loan Modification Chase Mortgage

Question: Does anyone know of a loan modification program on home?

mortgage? I have been interested in refinancing because of being caught in a interest only loan because I can't afford a conventional loan. I heard about this loan from Chase Colby. I am afraid to get into something that I don't know about. If anyone knows if this is a good thing to get into. Please give me some advise. Thank You

Answer: Many of those loan modifcation programs are scams. They can't do anything for you that you can't do for yourself. If you are on an interest only loan I would be very surprised if you have any equity at all. Read the terms of your loan document as it should list some options for conversion. Too many loan modification operations benefit the company and not the client.

Loan Modification Buzz Interviews Mortgage Executive