The federal home loan modification program and servicer-direct mortgage assistance plans from financial institutions like J.P. Morgan Chase to have begun offering more opportunities for homeowners to avoid foreclosure and find affordability in their home. Numerous mortgage servicers have begun offering alternative modifications to homeowners who may not qualify for the federal home loan modification program, but are still in need of a home loan modification to avoid eviction.
For J.P. Morgan Chase and other servicers, the Making Home Affordable Program releases data monthly on various aspects of foreclosure prevention efforts from both the federal program and different servicers. This data, which is one source of alternative modification program information, has shown that there are homeowners who are being denied permanent modification assistance from HAMP but are finding alternative modifications as a result.
As an example, J.P. Morgan Chase is one of the servicers which is tracked by this report, and according to the October Making Home Affordable Report, Chase had made, as of September 2010, 59,548 alternative modifications just for homeowners who had their trial modification canceled through HAMP and 85,354 alternative modifications for homeowners who were not accepted for a trial modification.
While there are other organizations that track proprietary modifications made directly from mortgage servicers, the data from the Making Home Affordable report shows only a sampling of homeowners who may have received assistance from these alternative mortgage assistance programs.
However, mortgage servicers have not been perfect in their implementation of modifications and there are homeowners who have still waged complaints against servicers like Chase, among others. There are troubles homeowners are facing when it comes to affordability even when these alternative mortgage assistance programs are offered and a lower monthly mortgage payment may be made available.
Not all of these mortgage modification programs, be they from federal sources or directly from financial institutions, will be able to stop all foreclosures, but homeowners are still being prompted to contact their primary mortgage servicer if they are having trouble making their monthly mortgage payment as modifications are still in place and may be beneficial in preventing foreclosure for homeowners in the coming months.