Mortgage Relief comes from Servicing Settlement

CNNMoney reports the $25 billion settlement between the country’s five largest banks and the state attorneys general and federal government has led to JPMorgan Chase offering mortgage relief for thousands of its customers. The settlement gives banks the most credit for loan modifications completed in the first year, so Chase begin working in April to identify suitable borrowers who met the guidelines to take advantage of its $4.2 billion mortgage relief pledge. Guidelines included loans held directly by Chase, and borrowers had to be delinquent or underwater. Terms of the loan with the new payment spelled out were included in the letter to borrowers. One couple, 20 months behind on their mortgage due to job layoff, and in danger of losing their home, saw their 6.5% interest rate reduced to 2.8% for five years, and then fixed at 3.9% for the remainder of the 18-year loan. Their house payments dropped $229 a month. MHProNews learned they had previously tried to obtain a loan modification but were denied because of low income.

(Image credit: realtor)

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