Mortgage assistance from JP Morgan.

JP Morgan, which acquired Washington Mutual in 2008, has put in place a mortgage modification program that will provide mortgage help to over 400,000 homeowners. They have committed over $70 billion dollars to this loan modification program. The program will provide a wide variety of mortgage assistance to those in need, including

• JP Morgan will provide foreclosure help by providing new mortgage loan terms to homeowners before they face the foreclosure process
• They will stop issuing, and try to modify, the toxic "pay option" mortgage loans that were previously issued
• Hiring almost 1,000 additional mortgage loan counselors to bring the company's total to almost 3,000 mortgage counselors across the nation
• They will begin a formal review process in which the goal will be to eliminate all unnecessary home foreclosures, and if a homeowners has no other option but to foreclose, they will provide as much foreclosure assistance as possible to help during the process.

Currently, JPMorgan Chase is in the process of reviewing its entire mortgage portfolio to determine which homeowners need mortgage help and may be facing a possible foreclosure. Those customers will initially be targeted. JP Morgan will try to modify pay-option ARMs that were issued. These are the controversial type of adjustable-rate mortgage that allowed borrowers to defer part of their monthly mortgage payments until later and and it allowed those homeowners to roll the difference onto the loan principal they owed. The thought was it will be paid back later. However, it turns out that these mortgage borrowers were oftentimes enticed by loan officers to take such risky loans by the lower payments. However, those borrowers now find themselves owing even more mortgage debt on their home, even as property values have declined across the country.

The program is now running. JP Morgan Chase is now proactively contacting borrowers and presenting them with pre qualified offers in order to help them reduce their interest rates or the overall principal on their loan. In addition, JP Morgan is now setting up almost 30 mortgage counseling centers across the country to provide face-to-face mortgage help to borrowers who need it the most in those parts of the country with high delinquency and foreclosure rates. Many of the mortgage borrowers who are in trouble say they need help reaching lenders when they want to re-negotiate their mortgage and they also communicate that it is difficult to determine who to talk to, and borrowers have become frustrated with the system. There have even been cases in which borrowers say that they have to stop making payments on their mortgage just in order to get a bank's attention. By JP Morgan proactively contacting borrowers across the country to offer mortgage assistance that should stop this from occurring and improve communication

Some of the mortgage help provided will include, among other options, loan modifications that the bank will provide to borrowers. The modifications will give borrowers affordable 30-year, fixed-rate loans. In addition, JP Morgan will offer those who need help conversion of their current loan for 10 years to an interest-only loan and principal deferment, in which a large portion of the mortgage debt that is owed will be forgiven by the bank for a number of years, or up until when the home is sold.

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