Homeowners with J.P. Morgan Chase have, like many other homeowners around the country, seen the value of their homes drop substantially in some cases and many people are now struggling with an underwater mortgage. A situation where a homeowner owes more on their home than their home is worth is a troubling spot to be in, but there may be assistance available for these homeowners.
Principal reductions are one of the common solutions that homeowners are asking for, but many lenders like J.P. Morgan Chase feel that principal reductions are not a practical solution to underwater mortgages and should not be used for a wide range of homes.
While J.P. Morgan Chase has stated that they are committed to helping homeowners with an underwater mortgage, they only want to use principal reductions in severe cases where a homeowner may be having trouble making their mortgage payment due to a loss in value or if they are in an area where a home is unlikely to see any of the value lost regained.
Homeowners have been angry with lenders over the past few months when it comes to mortgage assistance options, however, J.P. Morgan Chase and other lenders are using programs from both the Making Home Affordable Program and in-house programs to provide assistance for homeowners.
There is no perfect lender and there is no program that provides mortgage assistance that will be without error, yet homeowners are still being advised to contact their lender and ask about options that may provide a more affordable mortgage or help them avoid foreclosure during tough financial times.