Homeowners seeking for aid from the home loan modification program are looking at new incentives for underwater and unemployed homeowners. However, there is concern that JP Morgan Chase, the only top lender not offering principal reductions, may not be extending a helping hand to homeowners in this regard.
There are reports from 2009 that state JP Morgan will assist unemployed homeowners, if there income is unstable or non-existent as long as there is a promising outlook for homeowners to gain employment. While this may help some homeowners it isn’t exactly in-line with the new home loan modification unemployment forbearance program.
However, as one of the lenders not offering principal reductions, JP Morgan may be looking at many troubled homeowners that simply walk away from their mortgage, unless something can be done.
JP Morgan is one of the strongest financial institutions working in the Making Home Affordable Program, as they had little trouble during the recession and, arguably, didn’t need a bailout but were forced to take one so that no big lender would stand out from the rest during a troubling time for banks. It is that stability that puts JP Morgan in the position to help distressed homeowners, but homeowners must wait to see what forms of aid, outside of a mortgage modification, will be offered.