Through home loan modification efforts, J.P. Morgan Chase and other financial institutions have been able to offer more affordable mortgage payment options for numerous homeowners across the nation in the hopes of preventing foreclosures related to homeowner financial difficulties. Typically, home loan modifications have been offered through rate reductions, mortgage term extensions, and even principal reductions in rare cases, but there are still homeowners who are having difficulty with their financial situation and are seeking home loan modification assistance.
However, servicers like J.P. Morgan Chase have been criticized over the lackluster performance which many believe to have come from the federal home loan modification program, but there are factors which some feel have weighed into the shortcomings of the federal assistance plan. Initially, around 4 million homeowners were hoped to be assisted through the Making Home Affordable Program by servicers like J.P. Morgan Chase, among others, but there are indications that, upon the program’s completion, maybe around one-fourth of that amount of homeowners may be helped.
Despite the fact that Chase and other financial institutions have seen increases in the number of permanent modifications they have made, there are still difficulties for homeowners, and factors like unemployment have created more problems for homeowners and servicers attempting to modify home loans. While traditional rate reductions or mortgage term extensions could be helpful for some homeowners at the present time, there is also indications that show even these methods to lower home loan payments have come up short for homeowners.
Chase and other banks who service mortgages have seen problems with homeowners who default after receiving a home loan modification, which for many may be a redefault on their home loan, which obviously has been problematic. Pessimists of the Making Home Affordable Program have seen one bright area in that proprietary modifications have been able to follow the federal modification standard and help, what is reported to be, a greater number of homeowners achieve a permanent modification through these in-house programs.
While in-house, alternative modifications are not perfect and there are still homeowners who have trouble within these plans, there are options that go beyond federal modifications for homeowners who may not qualify for or who have had trouble within the Making Home Affordable Program. Understandably, not all homeowners have benefited from modifications and there are continued needs for these federal assistance plans in order to prevent foreclosure for some homeowners, so it’s for this reason advisers are still prompting homeowners to contact their servicer. Obviously, the earlier a homeowner begins addressing financial problems causing difficulty in their mortgage, the higher the likelihood they may be able to find a solution through a modification program or alternative assistance plan.