Chase Bank Will Stop Foreclosures for 90 Days
Today I received an email which told that Chase Bank the owner now of Wamu has decided not to foreclose on any homes for the next 90 days, while it implements a plan to help borrowers stay in their homes. Chase will hire 300 loan counselors and 150 people to review mortgages before they are placed into foreclosure to ensure homeowners were offered modifications first. With the customers of the newly acquired Washington Mutual in the fold, Chase's program could help about 400,000 families with $70 billion in loans, the company said.
Chase will offer borrowers with payment option ARMs alternatives such as 30-year, fixed-rate loans with affordable payments, principal deferral and interest-only payments for 10 years. I believe that Chase is the first to put this plan into effect, but other banks will son follow.
The question is what effect will this have on the real estate market.
Bob Calistri, Broker
Real Estate Auctions, llc
www.realestateauctionsllc.com
bob@realestateauctionsllc.com
Not sure if a pay option type loan is the answer for them.... that is what got WAMU in this mess to start with.....
Yes , but will this make a number of homeowners take their homes off the market?
Bob
I have been working on a short sale with WAMU now for about 3 months, does this mean we have to wait another 90 days? I represent the buyer and from what I have heard the seller is sick and unable to work which is the reason he is behind.
I don't know that answer, but that could be the case.
Bob
I will believe all this when I see it. I'm usually the optimist, and I certainly hope that they will do this and these folks can stay in their homes. I would much rather lose a listing and see the folks stay.
Celina,
The source was the Florida Business Journal, quoting a Chase Officer.
Bob
Thanks for sharing this info - hopefully, it will be something to help people who need it!
Norma
Your right some people need the help.
BOB
Great info. I've heard that banks are going to be doing a lot more loan modifications. Here's proof.
Jonathan
But it also means that a lot of Short Sales will go away.
Bob
I am sure that other banks are working on this too, and this will slow down the REOs, too little too late...
I've heard about this starting to happen. Apparently Bank Of America who bought out Countrywide has a similar plan ready to roll out.
Hi Kenneth
Yea I think your right about the other banks.
Bob
Justin,
So what's going to happen to the market?
Bob
As real estate agents, most of us have been shaking our heads for sometime and wishing banks would do just this. It's good to see a bank testing the waters. If we can put an end to this foreclosure crisis it will give confidence to home buyers and the banks and those investing in the pooled mortgages.
Steve,
Your are right about the market in general. The banks will bring back a good credit situation and perhaps buyers will come back into the market.
Bob