Modifications on home loans have been one of the main resources homeowners have used as a way to avoid foreclosure, but there have been problems which have arisen over the past months and necessitated alternative assistance options. While federal modifications are one of the more widely known modification plans available, servicers like J.P. Morgan Chase also offer in-house modification assistance to homeowners in need.
Yet, the October Making Home Affordable Report shows that there are payment plans that have been made available outside of traditional modification agreements. Simply put, servicers like J.P. Morgan Chase have, in some cases, created a payment arrangement between the borrower and servicer that does not involve a formal modification of a home loan.
These payment plans by J.P. Morgan Chase outside of formal modification agreements have benefited homeowners who had their trial modification canceled or who may not have been accepted into a trial modification, according to HAMP reports. For homeowners who had their trial modification canceled, the October report stated that 208 were offered a payment plan outside of a formal modification, while 526 homeowners not accepted for a trial modification were given this same type of agreement outside of a modification.
While these numbers may be considered small in comparison to homeowners who are facing foreclosure and attempting to find affordability in their home loan through modifications, it does give some homeowners hope as there are more options available to prevent foreclosure. It’s true there have been some mortgage servicers who were improperly processing foreclosures, and may have denied homeowners potential assistance that could have helped them avoid the loss of their home, modifications, extension programs, and simple agreements between servicers and homeowners have all been used as a way to prevent homeowners from losing their property.
However, there are troubles that remain between homeowners and servicers, as many financial institutions have not properly implemented foreclosure prevention plans and, according to many homeowners, seem to be unwilling to offer any solution to a homeowner’s predicament. It’s understandable that some homeowners are simply in a situation within their financial life which will not allow them to take advantage of these alternative payment solutions outside of modifications, but homeowners are still being urged to consult resources like housing counselors or to talk with their servicer in the hopes of finding a foreclosure prevention solution for their personal situation.