and JPMorganChase is doing part of what is required…
JP Morgan Chase has a deal for some homeowners behind on their payments: If they’ll accept a quick sale of their home, the bank will give them $10,000 to $20,000 and forgive what it loses on the mortgage.
SP TIMES
Now the mind numbing thing about this is none of the banks have figured out a way to work with homeowners and keep them in their homes, but most homeowners realize that “owning” a home with a mortgage on it really just does not make much sense. As more and more homeowners accept this reality, getting out from under the massive debt load of the mortgage offers real relief.
It’s time to stop blaming our courts for causing this mess that was dumped into our laps. It’s time for the banks to take real hits, absorb their losses and get on with it….
The BIG 4 are currently reviewing what may be the definitive solution to this problem. It will not only allow the bank to put the property back on the performing side of their books, it allows the homeowner to remain in the home with a more affordable and permanent payment.
HOPES (Home Owner Preservation Equity Share) would eliminate the need for Short Sales, Foreclosures and these temporary and Bogus Loan Mod programs.
HOPES has actually been in development for more than 20 years, but until the recent mortgage crisis, it was ignored. HOPES was created as a result of a collaborative effort between several organizations (to be named later).
The underpinning and foundation of HOPES is an Illinois Type Title Holding Land Trust with both Homeowner, Lender and Management as beneficiaries. In return for agreeing to the share in the future growth and appreciation of the corpus (trust property) over the trust term, which may be as many as 20 years, the lender would agree to bring the loan current and lower the monthly payment to what would equal to a Fair Market Rent based on the current property value.
In the event the current Homeowner cannot afford the new payment or does not wish to remain in the property, the Trust Manager would simply replace them with someone that would to do nothing more than prove they can afford the new reduced monthly payment and and subsequent closing costs associated with trust set up and administration, very similar to in cost to closing costs of a new mortgage. The new resident will not need to qualify for a mortgage but merely and legally assume the current financing.
The “Equity Share” HOPES model has been successfully used by Realtors and Investors in all 50 States since the early 80’s.
What seems to be missing here is the pretender lenders are still not producing standing and are just stealing an asset that they may have already received 30 to 40 times the alleged loan amount except now it costs them a few more dollars to still steal the property.
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