Foreclosure Negotiation
Foreclosure Negotiation After Banks Start Freezing Foreclosures
J.P. Morgan Chase announced on November 3, 2008 that it would not put any more homes in foreclosure status. This freeze will be in effect for the next 90-day period. J.P. Morgan Chase intends to modify its $70 billion mortgage loan portfolio by renegotiating with homeowners to keep homeowner to save their homes from foreclosure. Its 24 regional center having about close to 500 loan counselors will negotiate with about 400,000 homeowners for modification of their mortgage loans.
This is a different way to negotiate foreclosure where banks are forced to ease mortgage loan terms after getting government support.
J.P. Morgan Chase acquired Washington Mutual in October 2008 with its mortgage loan portfolio. The U.S. Treasury Department supported this acquisition by providing $25 billion cash in exchange of its shares. Adjustable Mortgage Loans (ARMs) are prime target for restructuring them into possibly 30-year fixed term loans.
Citibank is expected to launch a similar program to restructure its $20 billion mortgage loans covering 100,000 homeowners. Bank of America has similar plans to help about another 100,000 homeowners in initial stage.
Posted: November 5, 2008 ...................................Post a comment
Blog category: Blog menu > Foreclosure negotiation
Related blog posts: Bank foreclosures - Foreclosure news
Citibank cut another 53,000 jobs following its announcement of moratorium on foreclosures in first week of November 2008. Less activity with less people. Homeowners will get some relief before Christmas while others will be looking for new jobs. But life will never be the same for thousands of people! Marianna M.
Posted: November 17, 2008 ...................................Post a comment