J.P. Morgan Chase Home Loan Modification Program–Homeowners Seek Alternative Foreclosure Prevention Plans

Homeowners with J.P. Morgan Chase have sought out mortgage assistance through the Making Home Affordable Program over the past months. While there have been homeowners who have been granted a permanent modification, and overall permanent modifications are on the rise, there are still difficulties that remain for many homeowners.

Many homeowners believe that mortgage servicers are not doing all they can to help those who are seeking assistance with their home loan payments. While there are many who have been denied a trial modification or have had their Making Home Affordable trial modification canceled, there have been reports that in-house mortgage assistance programs offered directly from mortgage servicers have been of help.

For example, Chase has made 44,086 alternative modification plans for homeowners who had their trial modification canceled and made 52,007 alternative modifications for homeowners who were not accepted for a trial modification in the Making Home Affordable Program. These numbers are reported in the July 2010 Making Home servicer report and indicated that homeowners who are being denied help through the modification program from the Obama Administration may not be without hope.

While in-house modifications and alternative payment plans are available in many cases, they vary from lender to lender. There are accusations that these alternative modification plans, which are set in place to help prevent foreclosure, may not always be in a homeowner’s best interest or may come with terms that are less desirable than those from the Making Home Affordable Program.

Many homeowners have voiced their anger over the actions of mortgage servicers in dealing with troubled homeowners and many still feel that these banks are unconcerned with making mortgage payments more affordable for those who have come upon difficult economic times. However, despite the fact that there will be homeowners who are unable to find the assistance they need, these alternative modification foreclosure prevention plans may provide more homeowners a chance to keep their home when a home loan modification from the Making Home Affordable Program is denied.