Mortgage Modification Specialist – JP Morgan Chase Bank Loan Modification Program

The present state of the economy has affected a lot of people leaving them without jobs, suffering lay-offs, and even salary cuts. Almost everybody is experiencing the same problem. An ordinary person’s capacity to earn is not enough to cover the monthly mortgage payments they owe. This results in being in default of the loan payments exposing them to the threat of turning their homes over to their lenders. The good news is that there are many companies that can help you cope with your loans, lenders like the Chase Bank.

For thousands of homeowners looking to save their homes from being auctioned for not being able to pay their monthly mortgages, the Chase Bank Mortgage Loan Modification program would seem like a huge boon. The terms and conditions required by the bank are easy to understand and can be readily met by homeowners.

The bank merely requires that the borrower inform them ahead of time if they cannot make the payment. This requirement gives the bank the freedom to appoint and send an agent to discuss the problem with the borrower in a free and straightforward manner. With the record of their bank statement showing the latest two month transactions, their recent income tax statement as well as their income slips and letter explaining why they cannot make the payment, income and expenses of the clients are evaluated. These are used to formulate a proper plan of action in order to prevent defaults, even future ones.

With the bank’s unique Foreclosure Rescue Program, the bank can hold off foreclosing the property even 5 days prior to foreclosure by making a detailed re-evaluation of the client’s file. Another program, the Enhanced Streamline Reliance Program saves the mortgagor by replacing their variable mortgage rates with fixed rates to remove some pressure from the borrowers. With the assistance of the local community groups, the bank is able to use places like churches as hotels as a meeting place with their borrowers. By taking great lengths, the bank helps borrowers settle their loans and, through applicable retrieval packages, even save their homes. Even homeowners who are 90 days past their payment dues are given hope with the bank’s Project Lifeline Program.

This special loan modification program gives them a 30-day breathing room from foreclosure and gives them a chance to settle their payments. Homeowners who have problems settling their dues have been rescued by this program saving their homes.

The plan’s performance has been quite impressive, with the loans due for resettlement by March 2008 having been settled 51% of the full dollar value of subprime ARMs serviced by Chase. Over 415 million dollars were used to refinance or assist the loans of prime borrowers. Already, millions of Americans have received help and achieved financial stability with the aid of the JP Morgan Chase Bank’s Mortgage Modification Program.


The Subprime Mortgage Meltdown? Blame it on the Banks Who Believed Their Own Lies

As the banks have become aware of just how much bad lending has been going on over the past five years, they have begun taking drastic measures to cut down their exposure to the subprime mortgage mess. Many lenders have gone out of business, filed bankruptcy, or stopped making loans to unqualified applicants, but this has caused a general drying up of credit in the economy. The subprime debacle is leading directly to a much more generalized credit meltdown, as homeowners in trouble will be unable to refinance their homes to save them from a financial hardship, and they will fall further and further behind on all of their bills. A quick refinance to consolidate and lower bills is simply not an option for a great number of homeowners now.

Banks are not even lending to each other very much right now. Many of the large banks, such as Chase, GMAC, and Washington Mutual, although they were not large players in directly lending to loan applicants in the subprime market, were voracious buyers of these loans. They would buy large numbers of bad loans, package them, and sell them to investors or hedge funds managers, who believed the returns would justify the enormous risks involved.

However, the mistake was in believing that real estate prices would just keep rising; if the homeowners with the bad loan defaulted, the banks would simply sell the property for a huge gain. Whether the owners made the payments or not, the investors would make money in a steeply rising real estate market. Of course, these geniuses failed to realize that large numbers of foreclosures would inevitably lower the home values in areas hit hard by defaulted loans. Once this happened, the charade could not last much longer and everyone realized just how toxic are loans made to people who could not afford to pay them back.

Now, with trillions of dollars of bad mortgage debt floating through the economy, banks are desperately attempting to reduce their exposure to the risks. If another bank requests to borrow money from a large lender, what is the reason? Because they are experiencing a short-term liquidity problem, or because the only way to stay in business for another few days is borrowing money that they will eventually default on once their mortgage clients default in even large numbers?

No one even really knows who owns these subprime mortgages, so every lending decision by a bank to another bank is now consumed by a fog of suspicion and distrust, which explains why credit is still scarce despite the Federal Reserve’s repeated lowering of the interest rate and direct injections of newly-printed money into the economy.

Of course, all of this reduction of risk, refusal to lend money to homeowners in trouble, and direct involvement in the economy by the central bank just leads to more problems for homeowners. They are unable to figure out who owns their mortgage, because the loan has been sold numerous times and is now in the hands of some hedge fund who sells the servicing rights to another company which then sells those rights to various other companies. Even courts now are throwing out some of these foreclosure because the plaintiffs can not prove their own the loan; while this is a positive development for homeowners, it does not allow the mortgage contract to be performed as written and leads to more confusion as to just what is going on with these subprime loans.

The homeowners are unable qualify for a loan to fix their problems temporarily, because banks are no longer lending money to people in their financial situations. And they can not even afford to keep up with rising prices any longer, as the Federal Reserve inflates the money supply, decreases the purchasing power of the dollar, and bails out banks directly. While no one party should get a direct bailout, the fact that the banks are getting it just to prop up their bottom lines for the short term will not do a single thing to provide help to homeowners falling behind. They still do not qualify for a new loan, whether the lenders have been given free money or not.

And the new money given to the lenders just increases the possibility of more foreclosures, which increases the chances that the banks will request more bailouts in the future, leading to more inflation and more foreclosures, and so on. This cycle of stealing purchasing power from the average consumer to give to the big banks because they may not make as high of profits as they once expected is no excuse for the act of stealing money from the homeowners to begin with. When the Federal Reserve, owned by the large banks to begin with, prints money to give to the large banks, this is nothing but outright theft from homeowners. As the money supply increases, money becomes worth less, but those who have access to the newly-created money can continue to prosper at the expense of those who do not.

With bad lending practices, absolutely confusing loan paperwork and unclear chains of ownership, and continually relying on inflation to bail them out of these poor decisions, the banks have been shooting themselves and their clients in the foot at every opportunity. Extracting as much profit as possible from the people through lies and manipulations is one thing; believing their own lies is entirely another. Of course, it always helps when the banks do not have to worry about things like accountability or being punished in the market. After all, they exercise inordinate control over the market through interest rates and money supply, and will begin the next bubble after the currently bursting one’s fallout has been cleaned up.