In a weird twist of alternate reality, JP Morgan Chase and Bank of America are proactively reaching out to borrowers they have identified that are not in default and offering to modify their mortgages.
The New York Times is reporting that a Miami condo owner had her Chase mortgage cut in half, and she hadn’t even asked for that to happen. Christmas came early in Miami.
Apparently the banks are trying to actually get a head of the remaining toxic option ARM mortgages still on the books.
But before you get your hopes up that this is going to happen to you, the practice is limited and still a bit of a mystery. It just appears to fall from the sky into the mailbox of some mortgage holders and is initiated by some mysterious formula at the banks.
For those that have struggled with the bank to proactively get a mortgage modification this silent internal policy of reaching out to homeowners must be frustrating.
“Adam J. Levitin, a Georgetown University law professor, said these little-publicized programs were more evidence that the banks were behaving in contradictory and often maddening ways.
“Loan modifications that should be happening aren’t, while loan modifications that shouldn’t be happening are,” he said. “Homeowners of any sort, whether current or in default, would rightly be confused and angry by this.” – Source