J.P. Morgan Chase Home Loan Modification Trial Modification Plans–Are Homeowners Finding Mortgage Assistance?

Homeowners with J.P. Morgan Chase have sought out a home loan modification from the Making Home Affordable Program in order to make their home loan payments more affordable. Obviously, there have been troubles between servicers and homeowners, specifically pertaining to trial modification plans. There have also been many homeowners who have either been denied a trial modification or had their trial modification canceled, which has many asking whether mortgage servicers need to do more or whether the program is simply unhelpful for specific homeowners.

As an example, the Making Home Affordable servicer report for July 2010 indicates that J.P. Morgan Chase is reported to have started 208,270 trial modifications as of the report’s release, but only has 37,586 trial modifications are ongoing at the present time. While some of these trial modifications have moved to a permanent modification status or homeowners were able to recoup their financial stability and no longer need a modification, many homeowners believe that either servicers or the program is not as beneficial for as many homeowners as it may have been able to help or could help in the future.

It’s also recorded in the July 2010 report that homeowners with J.P. Morgan Chase either had their trial modification canceled or were denied a trial modification for reasons like improper paperwork, a low debt to income ratio, or due to the fact that homeowners were not in imminent danger of defaulting. The report states that J.P. Morgan Chase has 74,486 homeowners who had their trial modification canceled and are currently either looking for an alternative modification or facing foreclosure, bankruptcy, or selling their home. Also, Chase is said to have 166,223 homeowners who were not offered a trial modification and, again, were granted an alternative modification, faced foreclosure, bankruptcy, or are looking to sell their home.

While alternative modifications from mortgage servicers have been said to outpace the number of homeowners who are helped from the Obama Making Home Affordable Program, there are still many angry homeowners who believe that mortgage servicers are not doing all they can to help troubled homeowners. While it’s understandable that some homeowners can simply no longer afford their home, the main complaint with homeowners that are struggling at the present time seems to be that they feel practical mortgage solutions are available but mortgage servicers are simply either uncaring or unwilling to implement these assistance plans.

While J.P. Morgan Chase has seen an increase in the number of permanent home loan modifications, unemployment and underemployment have caused many homeowners to either struggle while they are in their trial modification period or default if given a permanent home loan modification. Yet, again, alternative modifications directly from lenders are still available that may be helpful for some homeowners who cannot find assistance from the Making Home Affordable modification plan.