Chase Home Loan Modification Programs Bring Foreclosure Prevention For Some–Are Defaults Still A Problem?

J.P. Morgan Chase has seen an increase in the number of permanent home loan modifications they have made over the past months. Currently, as of the August 2010 Making Home Affordable servicer report, Chase has 60,932 permanent home loan modifications. Also, according to the same report, Chase has 22,799 active trial modifications in place.

While many would see this as a positive, especially since there are further reports to indicate more homeowners are being helped through in-house home loan modification plans made directly from mortgage servicers, there is still concern over defaults within home loan modification programs. Foreclosure prevention plans have assisted numerous homeowners avoid the loss of their home, but there have been concerns over the number of defaults homeowners face even when they are given a modification from the Making Home Affordable Program or directly from a mortgage servicer.

There are homeowners who argue that the Making Home Affordable Program has not been properly implemented by mortgage servicers and in-house alternative modifications are simply too costly to be effective. While it has been stated that in-house modifications may not offer mortgage payments as low as those from the Making Home Affordable modification plan, there are still numerous homeowners who are being assisted through these modification initiatives.

Yet, trouble remains between homeowners and mortgage servicers as more individuals are having difficulty meeting their monthly mortgage payments and may be unable to find help through these modification programs. While unemployment remains the driving cause behind housing market troubles and personal mortgage difficulties for homeowners, it’s hoped that more homeowners can find the assistance they need through these various modification options and avoid foreclosure in the long run.