Delinquency on the part of homeowners concerning their monthly mortgage payment continues to be a problem for servicers like J.P. Morgan Chase as increases in the number of delinquent homeowners continue from month to month. However, there are further concerns related to home loan modification efforts by various mortgage servicers as officials have been calling for a rejuvenation in these programs on the part of servicers since more homeowners are finding they need assistance to avoid foreclosure.
J.P. Morgan Chase is one of the many mortgage servicers who have been offering foreclosure prevention assistance through federal modification programs within the Making Home Affordable initiative. However, there have remained troubles in these modification plans as homeowners are continually redefaulting or being denied a modification altogether.
Foreclosure suspensions on the part of certain servicers weeks ago added more fuel to the anger of homeowners as they pointed out that the servicers are not giving homeowners the opportunity, in some cases, to participate in these foreclosure prevention efforts.
As delinquencies rise, there is fear that if modifications are not properly executed and made to be sustainable, homeowners in the housing market may continue to suffer as a result. As one of many examples of delinquencies which continue to be a problem, J.P. Morgan Chase saw an increase in homeowner delinquencies, in cases where homeowners were behind on their mortgage 60 days or more. According to the Making Home Affordable Program reports, 193,874 homeowners were delinquent 60 days or more as of August 2010, but that number increased to 208,750 homeowners for the month of September.
While Chase has seen increases in their permanent modifications and does participate in alternative mortgage modification plans available directly from in-house programs, there are still homeowners who are facing the loss of their home, and many feel the rate of foreclosures is outpacing homeowners who are receiving assistance.
No servicer has been perfect in their implementation of these programs, but homeowners are still being advised to talk with their servicer if their mortgage payment has become difficult to meet or speak with HUD-approved housing counselors and consult sources like the Making Home Affordable website for foreclosure prevention opportunities that may be available for their personal situation.