Foreclosures of homes will be stalled for the time being by JPMorgan Chase. At least for the next 90 days, the company will try to work out a way to see that borrowers will retain their homes according to an announcement on Friday.
Offers of refinances with more affordable schemes will be given to the mortgage holders. Counseling centers numbering at least 24 will be set up all over including one in Florida which will help home owners. Location in Florida however has not yet been finalized according to Nancy L.Norris, a spokeswoman for Chase.
Mortgages will be reviewed with the help of at least 150 people and 300 loan counselors hired by Chase. Properties will be considered for foreclosures only after offering the homeowners various options for modifications.
This program will enable Chase to help around $70 billion loans spread over 400,000 families with the help of its Washington Mutual customers. There is however no estimated cost yet. There was no statistics on the number of customers who would be benefited by this plan in Florida.
A national moratorium on foreclosures has been called by various leaders including Barak Obama, the democratic presidential candidate asking banks to renegotiate the terms of housing loans. The US department of treasury helped Chase with $25 billion to become one of its shareholders.
Borrowers will be offered various payment options by Chase including fixed rate loans spanning over thirty years making them affordable, ten year interest only payments and principal deferral in a bid to make them more affordable in the long term.
