Homeowners with JP Morgan Chase have been asking that solutions be presented for those with a severely underwater mortgage, as many homeowners are now looking at a home that is valued at a price less than the mortgage.
This is obviously a frustrating situation for homeowners and many have been asking that principal reductions be made on cases where homeowners are now looking at an underwater mortgage. While there are principal reduction options for homeowners on the horizon through the Obama Making Home Affordable Program, many lenders are against using this type of assistance.
JP Morgan Chase, among other lenders, believe that principal reductions are a form of mortgage aid that should only be used in specific cases, where homeowners are in an area that has seen a drop in mortgage values and those values are unlikely to return or a homeowner that stands to have trouble making a mortgage payment because of an underwater mortgage.
While JP Morgan says they have options to assist underwater homeowners, it’s best that homeowners should contact their mortgage lender, if they are struggling in their mortgage, to find what options are available to them.