Recent reports have indicated that J.P. Morgan Chase has stopped foreclosures on around 50,000 homes due to questions that have arisen about whether these foreclosures are legal or valid. Concerns have arisen about mortgage servicers and foreclosures that have resulted when homeowners have come upon financial hardships, which obviously has put a strain on their ability to make their monthly mortgage payments.
Yet, reports that employees at financial institutions like J.P. Morgan Chase and GMAC Mortgage have stated that certain foreclosure documentation was not thoroughly examined and was simply passed through, even in cases where a foreclosure may not have been warranted. Understandably, homeowners have grown quite frustrated with financial institutions over the past months and the vast amounts of foreclosures that have taken place across the nation have aroused the anger of these individuals.
Previously, GMAC Mortgage stopped foreclosure proceedings in numerous states and now Chase is doing the same so that a review can be conducted as to the validity of certain foreclosures that have been processed. Many homeowners have been greatly angered not only with J.P. Morgan Chase, but other mortgage servicers as well, when it comes to issues like foreclosure and mortgage assistance.
Countless homeowners with top mortgage servicers have cited problems, specifically in the home loan modification program, where lenders have repeatedly asked for documentation, stalled homeowners in a trial home loan modification plan rather than moving them into a permanent modification status, and denied modifications in cases where a homeowner should have qualified; all of which have caused a deeper rift to emerge between homeowners and mortgage lenders.
While mortgage servicers who are seeing increases in foreclosures may also be providing assistance through home loan modification plans, it’s hoped review processes, like the one J.P. Morgan Chase is conducting, will create an environment where homeowners who are struggling with their mortgage will not simply be cast out of their home but will require that representatives with mortgage servicers take a closer look at a homeowner’s situation in order to provide better assistance and allow homeowners to possibly avoid the foreclosure process.