Chase will turn 400,000 high-interest option-ARM mortgages into lower-cost fixed ones, the bank announced this Friday. Foreclosure processes on the loans will be stopped for 90 days while the procedure gets set up. Banks mainly have latitude to adjust the mortgages they themselves own. The complexities of modifying a loan that may have been sold and repackaged into a security are intricate. For one, hedge funds have threatened to sue banks if they modify the loans underlying their bonds. So hooray for the lucky 400,000. Only a few more million to go. If you’re a homeowner facing foreclosure and you’re unable to get your lender to work with you, try contacting the HOPE NOW hotline at 1-888-995-HOPE for free advice from a home preservation counselor.