Home Loan Trial Modification Numbers Drop For J.P. Morgan Chase Homeowners In July

J.P. Morgan Chase has offered many homeowners the opportunity for a more affordable home loan payment through the Obama Making Home Affordable modification program. While there have been ups and downs for the majority of lenders and homeowners have been unhappy with their experience while seeking a modification, many worry that not enough is being done for homeowners who are struggling.

Those who feel that servicers need to do more often point to numbers from modification reports. For instance, J.P. Morgan Chase saw a decrease in the number of trial modifications from June to July. The June 2010 Making Home Affordable Report indicated that Chase had 63,259 active trial modifications at the time of the report’s release. Yet, that number dropped in July’s report to only 37,586. J.P. Morgan Chase did see an increase in the number of permanent home loan modifications they had made, but many worry about the implications of these decreases in trial modifications from various lenders.

Homeowners often accuse lenders of not doing all they can to provide assistance but lenders are quick to counter with arguments that state homeowners have filed improper paperwork or simply do not qualify for a modification. While some home loan trial modification cancellations may have roots in these arguments, there is concern that more and more homeowners are simply unable to make trial modification payments.

J.P. Morgan Chase offers a variety of alternative modification and mortgage assistance plans, and also participates in some of the Making Home Affordable extension plans, but in cases where trial modifications are being canceled many worry that this points not to the problem on the part of lenders but an inability of homeowners to afford a modified mortgage payment. Homeowners continue to have delinquency and default problems in the modification program, which many believe stems from unemployment and an overall slow economy.

While permanent modifications from J.P. Morgan Chase did increase, more homeowners lost the opportunity to obtain a permanent modification through the Making Home Affordable Program in July. However, with extension programs targeting specific homeowners like those who are unemployed or who have an underwater mortgage, and many mortgage servicers offering in-house assistance plans, there may be options left for homeowners who were denied a permanent or trial modification from the Obama Making Home Affordable Program.