For many months I have said that the banks will have to admit where they over-lent, write off some principal and start working with homeowners to keep as many as possible in their homes. Friday we got some encouraging news from JP Morgan.
“JPMorgan Chase & Co., the largest U.S. bank by market value, said it won't begin new foreclosure proceedings on some loans while it finds ways to make payments easier on $110 billion of problem mortgages.
Within the next 90 days, the bank, which two weeks ago accepted a $25 billion cash infusion from the government, will examine loans and 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.
Congress has been urging financial-services companies to work with borrowers and avoid foreclosures, which rose to the highest on record in the third quarter. Bank of America Corp. said it will help more than 630,000 at-risk borrowers stay in their homes.”
Finally some steps in the right direction to help heal the housing market…
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