J.P. Morgan Chase is one of the servicers who has questions concerning their foreclosure practices and documentation, which has caused foreclosure suspensions and reviews across the nation. There were reports that indicated some employees improperly processed foreclosure documents, which has caused many to question the validity of these foreclosures.
However, there are those who feel these foreclosures will not likely be overturned and were justly made. While the procedures which were required for processing these documents may not have been followed incorrectly, the validity of these foreclosures is not in question by many.
In fact, reports indicate that J.P. Morgan Chase CEO Jamie Dimon stated that he felt the chances of mistakes being made on these foreclosure documents was unlikely. Again, analysts seem to have a consensus that the procedures of these foreclosures are what should be questioned, not the validity of the foreclosures themselves.
Understandably, many homeowners who have lost their home are upset with mortgage servicers and, with recent foreclosure suspensions, many homeowners are accusing these financial institutions of not doing all they can to provide proper foreclosure prevention programs and opportunities. Home loan modification programs from J.P. Morgan Chase have been offered through the Making Home Affordable Program and private options as well, but homeowners still continue to see problems with defaults.
While there are those who are hopeful the suspension and review process of various servicer’s foreclosure practices will bring about changes in the foreclosure process for the better and more extensive foreclosure prevention opportunities for homeowners who face the loss of their home, there is concern that delay in these suspensions and reviews could cause more damage to a weak housing market.
It’s hoped that these reviews will only take a few weeks and will not cause any detrimental effects to the housing market, but there is concern over homeowners being unable to purchase these foreclosed homes and the devaluation of property as homes sit empty. However, as stated above, representatives from J.P. Morgan Chase feel these foreclosures were justly made but are simply reviewing documents to correct any procedural errors which may have occurred.