Chase Modification Plan Up & Running
Posted by: Carleton Sheets in Real Estate Investor, Real Estate, Modification, Loan, Lender, JPMorgan Chase, Foreclosure, Chase, Assistance on Jan 22, 2009.
Whether I'm reading the newspaper or reading articles online, I'm always looking for positive news. In a move that I think is a positive step forward, JPMorgan Chase has extended loan modifications to investor-owned loans. According to the article, loan modifications on investment properties could be anything from lowering the principal of the loan, to adjusting the interest rate or the payment schedule.
Previously, owner-occupants were the only homeowners eligible for loan modifications. If you were an investor or had a balloon note and were trying to refinance, or if you had with cash flow problems ... well, that was just too bad.
The announcement by Chase is a good public relations move, but it's also a good business move on their part. And I hope that other lenders follow Chase's lead on this. It would seem that it is in everyone's best interests to do so.
Many real estate investors believe that one of the ways to solve the housing crisis is for the federal government and lenders to implement programs that will encourage investors to purchase property---instead of discouraging them. It seems that allowing loan modifications for investors would support this position.
What do you think? Will we see less foreclosures in the future---if more lenders "cut to the chase" and offer loan modifications to qualified homeowners and investors?
