| Homeowners seeking help with an unaffordable home | | | | acquired Washington Mutual, they inherited a large |
| mortgage were given hope by the announcement of a | | | | portfolio of the risky Option Arm loans which have |
| new aggressive Chase loan modification outreach | | | | proved to have a high default rate. The decision was |
| effort. The special enhanced program aims to help | | | | made to offer loan modifications that eliminate |
| 400,000 families with $70 billion in mortgages to be | | | | negative amortization and will be more affordable for |
| modified so they can stay in their homes. Chase | | | | borrowers over the long term. |
| promises a systematic review of its entire mortgage | | | | Homeowners who are having difficulties paying their |
| portfolio. | | | | Chase, WaMu or EMC mortgages should apply for the |
| JP Chase Morgan, who also owns Washington Mutual | | | | new Chase loan modification program. The enhanced |
| and EMC will be extending its already significant Chase | | | | program will offer: |
| loan modification program by implementing proactive | | | | - 30 year fixed loans with affordable payments |
| outreach efforts to borrowers who have loans with | | | | - principal deferral |
| the three companies. The special enhancements to | | | | - interest only payments for 10 years |
| their program include: | | | | Borrowers will be contacted by mail with Chase loan |
| - Pre qualified modification terms sent out to needy | | | | modification offers. The homeowner then needs to |
| borrowers | | | | complete the application and provide the necessary |
| - Opening regional counseling centers staffed with | | | | documentation for final approval to obtain the new |
| trained counselors to met borrowers face to face | | | | modified payment. Not all borrowers will qualify, so it is |
| - Independent review process for any loan prior to | | | | important to learn about the guidelines and know how |
| initiating foreclosure | | | | to complete the paperwork properly. If the paperwork |
| - No new foreclosures while these enhancements are | | | | is not completed properly, even the most deserving |
| implemented | | | | homeowner may be denied the loan modification help |
| The bank has already helped over 250,000 borrowers | | | | they need and deserve. It is important for |
| with a Chase loan modification. The total foreclosure | | | | homeowners to learn about the application process so |
| preventions are projected to exceed 650,000 loans | | | | they will have a better chance of approval for a |
| representing $110 billion in mortgages. When Chase | | | | Chase loan modification. |