Various factors have contributed to homeowners missing mortgage payments and becoming delinquent on their home loan. However, delinquent homeowners with J.P. Morgan Chase and other mortgage servicers participating in the Making Home Affordable home loan modification program may have opportunities to avoid the loss of their home through mortgage payment reduction plans.
Recently, there have been calls for an increase in modification efforts in light of foreclosure scandals which brought to light improper foreclosure practices by certain financial institutions. While many of these homeowners who had become delinquent on their mortgage and faced foreclosure were in a position where a foreclosure was probably warranted, there are arguments that these homeowners should have been offered financial assistance through home loan modifications.
J.P. Morgan Chase, among others, has seen increases in the number of permanent modifications they have been making over the past months, as is reported in the Making Home Affordable servicer reports but homeowners are still calling for more to be done. However, Chase and other large financial institutions within the Obama modification program do still have trouble with homeowners who are delinquent on their mortgage and, according to the September 2010 modification servicer report, Chase had 193,874 homeowners who were 60 days or more delinquent on their mortgage.
While there have been criticisms levied against financial institutions like J.P. Morgan Chase and others, homeowners often argue that servicers are not properly implementing these assistance plans and, as a result, homeowners continue to default despite having a trial modification or even a permanent modification in place. While there have been imperfections on the part of mortgage servicers, continued troubles from areas like unemployment and underwater mortgages have caused homeowner delinquencies and re-defaults to remain a problem.
However, J.P. Morgan Chase homeowners who are delinquent on their mortgage or fear they may miss payments in the future are still being advised to seek out assistance through home loan modifications or other HAMP assistance plans. While, again, servicers and these modification plans are not perfect, homeowners who began dealing with their mortgage difficulties earlier are believed to have a better chance at finding an affordable solution that can bring about a monthly mortgage payment obligation which will be helpful for homeowners and their particular situation.