Recently, J.P. Morgan Chase suspended foreclosures due to questions over whether documents were properly reviewed and foreclosures were warranted in all cases. However, despite the fact that questions over whether foreclosure documents were lawful or not, there is concern that home loan modification programs, like those from J.P. Morgan Chase, may not be doing all they can to stop foreclosures in general.
J.P. Morgan Chase participates in the Making Home Affordable Program and has seen some success when it comes to permanent modifications within the governmental mortgage assistance plan. However, there have also been reports that J.P. Morgan Chase is one of the servicers who offers private home loan modifications to homeowners who may not qualify for assistance through HAMP.
Yet, homeowners remain angry over the troubles they have faced when seeking home loan assistance, especially when it concerns foreclosure prevention plans. While there are indications that more homeowners are receiving private home loan modifications than mortgage modifications from the Making Home Affordable Program, there are still a high number of homeowners who are facing foreclosure and defaulting even when assistance plans are offered.
While servicers like J.P. Morgan Chase cannot be held responsible for homeowners being unable to meet their mortgage payment obligation when factors like unemployment are in place, there are those who feel that some foreclosures may be preventable if home loan modification programs can be made more affordable.
Not much is known about private modifications from servicers like Chase, but homeowners who qualify for the government modification plan can have their mortgage payment reduced to no more than 31% of their monthly income. Yet, what concerns many is that homeowners are still missing payments even when these reductions are given, but this could be due to some homeowners being reliant upon unemployment benefits as their only income.
Since homeowners can no longer claim unemployment benefits as income when seeking assistance for modifications, servicers like J.P. Morgan Chase may be required to offer forbearance plans instead. While troubles continue for J.P. Morgan Chase and homeowners who are facing foreclosure, home loan modification plans are still being offered in the hopes that as the economy slowly improves and the job market creates more employment opportunities, there will be more homeowners who can avoid the loss of their home by using these assistance initiatives.