J.P. Morgan Chase Homeowners File Bankruptcy In Some Cases Where Home Loan Modification Is Denied

J.P. Morgan Chase has seen improvements in their home loan modification efforts over the past months as more modifications have been permanently made on homes where a homeowner was struggling to meet their mortgage obligation and faced the possibility of default. However, some homeowners have had more difficulty than others when it comes to obtaining mortgage assistance and, as a result, certain J.P. Morgan Chase homeowners have had to file for bankruptcy.

It’s been reported from the June 2010 Making Home Affordable servicer report that 1,441 homeowners with J.P. Morgan Chase who were not accepted into a trial modification plan filed bankruptcy. Also, 300 homeowners who had their trial modification plan canceled also entered into bankruptcy as a result.

While obviously bankruptcy and foreclosure or two alternatives that homeowners are fighting to avoid, these numbers for J.P. Morgan Chase are a small percentage of the overall bankruptcy filings that were made as a result of homeowners being denied a modification on their home loan. In total, 11,145 homeowners with the eight largest servicers in the Making Home Affordable Program filed for bankruptcy after having their trial modification canceled and 19,808 homeowners with these servicers entered into bankruptcy after not being accepted into the trial modification plan.

While more is said to be needed, in terms of assistance options for struggling homeowners, J.P. Morgan Chase and other top mortgage lenders have been offering not only modifications but extension plans from the Making Home Affordable Program and in-house assistance options as well.

Homeowners who may have trouble finding the mortgage aid they need can consult with their mortgage servicer about alternative options if a modification is unavailable. There are also resources like the Making Home Affordable Program and hotline which can offer housing assistance or program information to homeowners who are still seeking a way to make their home more affordable.