Chase helps families avoid foreclosure

07.05.09
By Timothy Jones

Despites signs that the economic slowdown may be moderating - some people are even predicting recovery to begin by year-end - many families in financial trouble are facing the possibility of losing their home.

The ADP National Employment Report showed that 473,000 private sector jobs were lost in June suggesting that higher unemployment rates could mean more households can't make their monthly mortgage loan payments.

In other cases, consumers agreed to take on mortgages but may not have fully understood the terms of the contract. Within a specified time period the mortgage loan payment due increased and consumers were unable to make the new higher payments.

Earlier this year President Obama announced the Making Home Affordable program in an attempt to have families refinance or renegotiate the terms of their mortgages in an effort to keep people in their homes.

Chase is now saying that it has approved 138,000 trial mortgage modifications over the last three months as part of the government program and its own program. The bank says that another 155,000 applications are currently under review.

Charlie Scharf, head of Retail Financial Services at JPMorgan Chase & Co, said that the company is hiring staff, leasing office space and buying technology that will help them better serve customers in need of modifications.

"We also clearly understand that many more families are anxious about their homes and need to hear from us as quickly as possible. We are committed to do whatever is necessary to help homeowners who qualify for these programs," he added.

Chase says that it will typically postpone the foreclosure process during the time it takes the bank to review an applicant's status.

The Chase and government modification programs require borrowers to make three modified payments in full and on time in addition to submitting certain paperwork to ensure the modifications can be made into a permanent solution.

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Bank programs are making progress keeping families in their homes