This is actually some very good news and frankly also a no brainer. How hard is it to realize one has set terms so predatory and unrealistic that they send their customers to the poor house? Maybe, just maybe it's a good idea to renegotiate reasonable terms so they actually make a little money after all instead of bankrupting their clientele?
Well, JP Morgan Chase gets it:
JPMorgan Chase & Co., the largest U.S. bank by market value, said it won't begin foreclosure proceedings for as long as the next 90 days while it finds ways to make payments easier on $110 billion of problem mortgages.
The bank, which two weeks ago accepted a $25 billion cash infusion from the government, may agree to reduce interest rates or principal amounts, New York-based JPMorgan said today in a statement. It will also open 24 centers to provide counseling in areas with high delinquency rates.
The plan includes mortgages held by newly acquired Washington Mutual.
From JP Morgan Chase launches a foreclosure plan:
JP Morgan Chase expects to help 400,000 families keep their homes during the next two years by working out $70 billion worth of loans. The company says its housing rescue efforts have already helped $250,000 families holding about $40 billion in loans
It appears there are complications because many of these mortgages are owned by other investors so hopefully they will see the light that some money is better than no money.
Good for them and I hope this pressures others to follow.