Home loan modification plans from servicers like J.P. Morgan Chase are intended to help homeowners avoid foreclosure by reducing home loan mortgage payments, interest rates, or by extending mortgage terms. However, recent foreclosure difficulties experienced by J.P. Morgan Chase and other servicers has caused many to question whether foreclosure prevention plans are actually helping homeowners avoid the loss of their home.
What has troubled many is the fact that servicers like J.P. Morgan Chase have seen increases in the number of foreclosure prevention assistance plans they have made. Reports from the Making Home Affordable Program show that permanent modifications are up for J.P. Morgan Chase and there are also reports that say more homeowners are being helped from private modifications directly from servicers than from the governmental modification plan.
Obviously, if homeowners are being offered more assistance plans yet foreclosure numbers still remain high, there seems to be problems arising at some point during the modification program. There are indications that homeowners may be defaulting despite having mortgage assistance plans in place, which have many accusing servicers of not offering modifications that are affordable for homeowners, but has others putting the blame in the area of unemployment.
While foreclosure documentation troubles that have been experienced by J.P. Morgan Chase and others due to improper processing on the part of employees, there is a general consensus that it’s unlikely these foreclosures will be overturned, since they were probably warranted. Yet, there is still concern that homeowners are facing foreclosure in such large numbers, as it has been said certain employees who were accused of not reviewing documents did so because of the vast amount of foreclosure paperwork they were dealing with on a daily basis.
However, J.P. Morgan Chase does still offer home loan modification assistance to homeowners and foreclosure alternative programs as well. Homeowners who are having a troubling time making their mortgage payments are being advised to contact their servicer or consult resources like the Making Home Affordable website if they are having trouble with the modification process. While foreclosures may still remain a problem at the present time, it’s hoped that changes in foreclosure prevention programs and foreclosure processing procedures will bring about renewal in foreclosure prevention assistance plans, which may help more homeowners avoid the loss of their home.