Homeowners with a J.P. Morgan Chase home loan have been in need of mortgage assistance, as have many homeowners with various lenders all over the nation. Yet, trouble between homeowners and lenders have come in many forms as well, specifically regarding the Making Home Affordable trial modification program. Homeowners believe that they have been disqualified from a permanent modification or had their trial modification canceled due to lenders being unwilling to aid homeowners in their pursuit of a more affordable mortgage payment.
However, lenders have stated that homeowners have trial modifications canceled as a result of missing documentation on their Making Home Affordable paperwork, a debt-to-income ratio that is below 31%, or the simple fact that some homeowners cannot afford their home loan payment even when a modification is in place and, as a result, these homeowners default.
J.P. Morgan Chase has also cited the fact that homeowners who have their modification trial canceled can find alternative assistance plans, which can help keep homeowners in their home or avoid foreclosure. As an example, according to the June Making Home Affordable servicer report, 58,605 homeowners had their trial modification canceled with J.P. Morgan Chase as of May 2010. Yet, 31,973 alternative modifications were offered to homeowners, 712 homeowners were current on their home loan at the time of their cancellation and 58 homeowners were given a payment plan outside of a traditional modification. While these numbers do show that homeowners who are being denied a home loan modification are getting alternative assistance, many homeowners point to the other side of the coin.
For instance, homeowners who had their trial modification canceled did not always receive alternative assistance to help make their home loan payment more affordable. While 903 of J.P. Morgan Chase’s homeowners were able to enter into a short sale or deed in lieu of foreclosure plan, 205 homeowners fell into bankruptcy and 10,927 homeowners begun the foreclosure process, with 1,119 foreclosures being completed, according to the June report.
Homeowners in this case are, obviously, frustrated since many have been fighting what seems like an uphill battle to keep their home. Homeowners want more options and less stringent terms on qualifying for a modification, as many simply want to be able to pay a more affordable home loan payment from month to month, which would allow them to keep their home. Yet, lenders continually point to the fact that some homeowners simply cannot afford their home any longer and those who do not qualify for a modification or any alternative program have few options remaining outside of losing their home.
Yet, despite troubles between lenders and homeowners, any homeowner that may be struggling to make their mortgage payment is often advised to contact their lender early so as to get a jump on any problems that may arise in their mortgage. Mortgage assistance is often easier to obtain for homeowners who attack the problem early, but there are those who believe that dealing with lenders is simply too problematic and they seek outside sources for assistance. While some companies have sprung up that can help homeowners through the modification program, there is caution that needs to be exercised as many scams are being perpetrated by these companies as well.
Homeowners who want advice or information outside of their lender may benefit from contacting or consulting the Making Home Affordable Program website.