JP Morgan Chase homeowners with an underwater mortgage are asking that principal reductions be made but it seems that Chase doesn’t feel principal reductions are an option that should be used in many underwater mortgage cases.
Like many other lenders, Chase doesn’t believe that principal reductions are a plan to be used on all or even the majority of homeowners that owe more than their home is worth, but rather is something to be used only in specific cases.
Some homeowners have asked for principal reductions simply because they want to profit from the sale of their home, which is understandable, and want the principal they owe to be dropped so they can do just that.
However, JP Morgan Chase has stated they are only willing to make principal reductions on homes when, for instance, homeowners with an adjustable mortgage may have trouble making their home loan payments.
It’s been advised that homeowners should talk with their lender to ask about underwater mortgage options specifically available to them.