Charlie Scharf, JPMorgan’s chief executive of retail financial services, discussed that the modifications at JPMorgan will range from reducing rates to extending terms to completely replacing products. Modification options will be given to customers based on their current product and needs.

One of the biggest stumbling blocks JPMorgan has found in trying to modify loans is actually getting in touch with customers, Scharf added. It has been our experience at Loan Mitigation Advocates that large banks, like JP Morgan, are currently unequipped to handle the shear volume of inquiries from people in dire financial predicaments. This is exactly where Loan Mitigation Advocates can be of service. We have numerous contacts deep within the banking industry and a proven process to expedite the loan modification process.

At Loan Mitigation Advocates, we monitor the various media sources and do diligent research daily.  The flip-flopping of opinions that occurs on this issue is prevalent.  One day, reports claim that the market is doomed for the next few years, and the following day information appears that indicates a recovery will ensue.  The bottom line is that there are too many dynamic factors to make a case for either side at this time.

Our prediction unease is market-dependent and well-founded.  No one does have a crystal ball.  Especially not now.  In our opinion, there are too many other kinds of balls up in the air.  Government intervention. Interest rates.  Bank takeovers. Consumer confidence.  The jobless rate.  The presidential election.  Too many balls in the air.

If you are now considering selling and/or purchasing a home, don’t get caught up in only what the media is saying.  Your primary focus should be on understanding your own motivation and your personal situation.  Do you need to sell your home now?  Are you currently renting and your lease is about to expire? Are you hoping to be close to a certain freeway to reduce your commute?  Do you want to get settled near a certain school or in a certain school district before your child reaches school-age?  Do you want to retire somewhere else?  Are you being relocated? These things matter.

We would argue that what truly matters the most in the timing of real estate transactions is what matters inside your home, inside your heart.  Clearly defining your justification for selling and/or purchasing a home will help you make (or not make) a move in any market environment.  Of course, exact timing of a purchase or a sale could possibly return you more or less money.  But, in the end no one has a crystal ball and being happily settled in your home and your decisions means a few less balls up in the air for you.

Bankrate.com

• 30 Year Fixed Rate: 6.74 percent with points averaging: 0.42
• 30 Year Fixed Rate Jumbo: 7.87 percent
• 15 Year Fixed Rate: 6.4 percent
• 5/1 ARM (Adjustable): 6.61 percent
• 1 Year ARM (Adjustable): 6.32 percent 

Mortgage rates exploded this week due to the lingering uncertainty with Washington’s bailout plan. Mortgage activity was up for the second straight week, according to the Mortgage Bankers Association.

Refinancing activity was up 12.5 percent, while applications for new purchases fell by 0.3 percent.

The story of Bernie Kellman is a primary example of the numerous borrowers who have unsuccessfully obtained loan modifications after several attempts. Recently, a Contra Costa Times article discussed Mr. Kellman’s situation and the brick wall that borrowers can encounter when pursuing a loan workout.

The chart below breaks out loan modifications by type.  This information comes from the California Department of Corporations:

Please keep in mind; at Loan Mitigation Advocates we are here to support the consumer.  We encourage you to attempt a loan modification on your own; however if you feel the need to pursue our services, we are happy to help navigate and guide your modification process.

Bankrate.com

• 30 Year Fixed Rate: 6.41 percent with points averaging: 0.42
• 30 Year Fixed Rate Jumbo: 7.65 percent
• 15 Year Fixed Rate: 6.14 percent
• 5/1 ARM (Adjustable): 6.49 percent
• 1 Year ARM (Adjustable): 6.04

For the second straight week, mortgage activity was down sharply according to the Mortgage Bankers Association.

For the last week in September, mortgage activity declined by a seasonally adjusted 23 percent. Refinancing activity plunged 34.7 percent, while applications for new purchases fell 10.9 percent.

At Loan Mitigation Advocates^sm, we believe that the central issue with the current financial crisis is directly tied to the number of foreclosures and delinquencies impacting the United States. To complicate things further, there are a number of homeowners that have loans scheduled to adjust in the near future.  Consequently, many more of these homes are bound to meet a similar fate. 

The financial rescue plan is necessary to point the economy in the right direction.  However, we feel that it will not have the desired impact on the housing market.  Homeowners who are in dire circumstances or are starting to feel the pinch due to their current situation should not rely on the plan as a band-aid or solution.  In the here and now, this plan will most likely not make it easier to pay your mortgage, or stop your rate from adjusting, or minimize the depreciation your home is experiencing. If you are experiencing a hardship and are facing or certain to face a housing crisis, the best solution is to try to mitigate your loan yourself or to call an expert in loan modification.

To help shed more light on the financial rescue plans potential impacts to homeowners Diana Olick of CNBC recently put together a great article on whether the government will get involved directly with taking over your home mortgage.  In particular, she attempts to answer the government’s probability with performing loan modifications or the restructuring of homeowner’s loans.

Prof. Case has made the claim that his index points to the bottom in terms of prices. The index measures prices in the top ten and top twenty U.S. markets as well as a new national index. In the article, Case makes the point that nine, of the top twenty markets, have been steadily improving over the last few months. Another factor is that affordability, that is the relationship between income and home price, is approaching a level that we’ve seen before at the end of other housing recessions.

Bankrate.com

• 30 Year Fixed Rate: 6.15 percent with points averaging: 0.43
• 30 Year Fixed Rate Jumbo: 7.41 percent
• 15 Year Fixed Rate: 5.81 percent
• 5/1 ARM (Adjustable): 6.08 percent
• 1 Year ARM (Adjustable): 6.37

Overall, mortgage rates across the board significantly dropped this week. The takeover of Fannie Mae and Freddie Mac, by the federal government, is likely the item responsible for the sharp decline in this week’s rates.

In other news, mortgage applications increased 9.5 percent from the previous week, according to the Mortgage Bankers Association.

This was a significant increase over the last few months. The July statistics are up about 17 percent from June and more than double the number since the beginning of the year. The statistics are based on 10 lenders that are reporting to the state regarding their transactions.

It has clearly taken some time for lenders to get on board with the option of performing loan modifications.  This latest data supports that a shift is occurring in the industry and it is only a matter of time before the majority of lenders are actively participating in loan mitigation. 

Bankrate.com

• 30 Year Fixed Rate: 6.6 percent with points averaging: 0.39
• 30 Year Fixed Rate Jumbo: 7.61 percent
• 15 Year Fixed Rate: 6.14 percent
• 5/1 ARM (Adjustable): 6.27 percent
• 1 Year ARM (Adjustable): 6.28

Overall, mortgage rates were mixed for the week.  Fixed rates edged slightly lower and adjustable rates saw a minor uptick.

The drop in fixed interest rates may be attributed to the possible bailout options for Fannie Mae and Freddie Mac. Bankrate stated that the average 30-year fixed-rate mortgage fell 6 basis points.

In terms of mortgage applications, they rose slightly for this week according to the Mortgage Bankers Association. In addition, refinancing activity and applications for purchases reported slight increases.

At Loan Mitigation Advocates^sm, we encourage homeowners to try and resolve their situation themselves. In many cases, the homeowner realizes the complexity of the situation and that they do not have the time, connections within the lending industry or negotiation power. This is where many homeowners turn to a loan mitigation advocate. The hiring of a specialist to handle the process from start to finish can ease an already stressed situation, reaping benefits long into the future, and most importantly, create an opportunity to reduce extreme credit health impacts and help you, the homeowner, stay in your home.