The actual nerve of some of these big banks who got government bailout money — ie, OUR tax dollars — is unbelievably astounding.
JP Morgage Chase, one of those banks deemed “too big to fail,” and so got $25 billion in government bailout money is now . . . are you ready for this . . . saying that homeowners in danger of losing their home to foreclosure don’t deserve mortgage modification help from the government.

Mortgage Modification Help for Homeowners: What JP Morgan Chase Bank Doesn’t Like About It
Specifically, the bank doesn’t like the Obama administration’s call for lenders to decrease the principal amount owed on a home loan. This is one of the ideas put forth by the government’s mortgage modification program (HAMP), primarily to help homeowners who are under water on their homes.
Their argument, according to the article, JP Morgan Chase Argues Against Mortgage Modifications, Citing Sanctity of Contracts, goes:
Like all loans, mortgage contracts are based on a promise to repay money borrowed . . . Importantly, there is no provision in the mortgage contract, express or implied, that the lender will restore equity or reduce the repayment amount if the value of the collateral — be it a home, a car or a stock market investment — depreciates.
This argument might hold some water if they weren’t one of the ones with their hands out taking government bailout money when the housing market tanked.
But, I digress.
Stopping Foreclosure: Why Principal Writedown Is Neeeded to Help Many Homeowners Facing Foreclosure
The reason this is necessary say many experts is that homeowners who are underwater can’t refinance/modify their home loans because there’s no equity in the home. And, even though the mortgage modification help offered by the government let homeowners refinance up to 105% of the value of the home, it wasn’t enough to help many homeowners who are underwater by much more than that (eg, 15, 20 and 25% or more).
Why JP Morgan Chase’s Argument Against Mortgage Modification Help for Homeowners Falls Flat
As stated in the previously linked-to article, the simple fact is, contracts are rewritten all the time. After all, what is “refinancing a home loan” if it’s not a “contract rewriting/renegotiation.” But, when banks like JP Morgan Chase are collecting fees off of these kind of every day transactions — with no principal reduction — they’re only too happy to sign on the dotted line without putting up a fuss.
HOWEVER, when the pendulum swings the other way — ie, they’re asked to forego some of their profits — it’s all of a sudden tantamount to a “breach of contract?”
Give me a friggin’ break!
JP Morgan Chase: Here’s What the Average Joe Seeking Mortgage Modification Help Wants to Say to You
WE ALL have to suck it up and pay the piper, so to speak, to get through the foreclosure crisis. Because of actions some like you took — many homeowners who did everything right are suffering. We’ve lost value in our homes, money from our retirement accounts and are still paying outrageous property taxes — and there’s no bailout to help us get back on our feet.
Now that the shoe is on the other foot — stop waving the “but we have a contract” flag with one hand, while asking for “we are too big to fail” help with the other.
If you have to write down some principal balances to help the housing market recover so we can ALL get back on track to prosperity — stop being such a ninny and do it.
Man up for heaven’s sake! As the graphic accompanying this post says, “Suck it up” . . . which is just what the rest of us have had to do.
Millions More Foreclosures Coming This Year
In 2009, there were almost 3 million (2.8 million) homes foreclosed on. This year, home foreclosures are on track to exceed 2009 numbers, making mortgage modification help — and any other kind of help the government can give — all the more necessary.
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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.