Making Homes Affordable For J. P. Morgan/Chase Loan Holders

| June 22, 2010 | 0 Comments

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The Making Homes Affordable program recently approved by the Obama administration may provide relief for homeowners suffering from the housing market crash. The program is designed to aid loan holders who have found themselves holding property which is no longer worth the value of their mortgage.

The program provides incentives to major loan holders such as JP Morgan Chase to aid at-risk home owners in modifying their loans, preventing foreclosures and the continuing deterioration of the housing market. The program not only provides encouragement to lenders to renegotiate and modify existing loans, but also provides incentives to homeowners who successfully meet the terms of their modified loans. In some circumstances, these homeowner incentives amount to as much as $5000 dollars off the principle value of the loan, in addition to the interest savings from modifying the original loan.

The hope is that this program will provide relief to mortgage loan holders, while at the same time stabilizing the downward spiral of housing prices that threaten to leave even more homeowners owing more than their house is worth. At the same time, this program allows banks to minimize the loss in value of their own assets that would result if large numbers of homeowners are forced to abandon mortgages which they can no longer afford.

Mortgage loan holders with JP Morgan Chase and other major lending entities should contact their loan holders to determine what options the Making Homes Affordable program offers them, particularly if they face difficulty paying off their mortgage. With this program homeowners may be able to avoid foreclosure all together.

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