Banker JP Morgan Chase, one of the stronger banks in the U.S., launched its own counter-offensive to address soaring foreclosures on Friday, including hiring more staff, a new review process to avoid unnecessary foreclosures and a moratorium on new default filings for 90 days until its plan is up and running. So will this plan work or is simply more smoke and mirrors? From a CNNMoney.com story:
The bank will step up its efforts to offer mortgage modifications for borrowers at risk, institute an independent review process to eliminate all unnecessary foreclosures and hire and train more staff to handle the added caseload that the plan will generate.
Most important, it will not put any delinquent loans into the foreclosure process during the 90 days it takes to implement its new plan.
JP Morgan Chase expects to help 400,000 families keep their homes during the next two years by working out $70 billion worth of loans. The company says its housing rescue efforts have already helped 250,000 families holding about $40 billion in loans.
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