Home loan modification efforts from J.P. Morgan Chase has seen some success over the past months and increases in permanent modifications continue to be reported by Chase and other financial institutions. Yet, many homeowners are still suffering from financial difficulties related to their home loan and, in these cases, traditional modifications may not be enough to help some homeowners find the affordability they need in their monthly mortgage payment.
Yet, Chase, among other financial institutions, takes part in these extension programs offered through the Making Home Affordable Program. HAMP extension plans are set to address issues like second liens, unemployment, and they may provide alternatives to homeowners who face foreclosure as a result of being unable to qualify for modification assistance. While there are still difficulties that remain within these modification programs and expansion plans, more homeowners may find affordability through options like second lien modifications or unemployment forbearance plans thanks to extension options.
Chase, and other financial institutions participating in HAMP, all have homeowners who may have a second lien on their home loan which has prevented a primary modification from being effective. It’s for this reason, that the second lien modification program was made available to assist homeowners who may need to modify a second mortgage in order to obtain the affordability they need at the present time.
Yet, numerous homeowners are still suffering from problems related to unemployment and, since traditional modifications may not be helpful in these cases, the Unemployment Program was established as a way to offer forbearance options to homeowners who were jobless and faced the loss of their home. Previously, some homeowners may have been able to qualify for a modification, but the sustainability of these reduced payments was based only on income from unemployment benefits, which are temporary. Yet, in the unemployment forbearance option, homeowners may be able to forgo their monthly mortgage payment for a set period of time and, hopefully, find an employment or income opportunity that would allow them to at least qualify for a traditional modification.
Sadly though, there are still homeowners who are facing foreclosure and, despite their best efforts, have not been able to benefit from modifications or assistance programs. In these cases, servicers like Chase may be able to offer a deed in lieu of foreclosure plan or work with a homeowner in a short sale of an underwater mortgage. These options, if a homeowner qualifies, may allow them to avoid a formal foreclosure process despite the fact that they are losing their home. Understandably, homeowners would rather find success in foreclosure prevention efforts, but alternatives are also in place as a last resort for homeowners who are facing foreclosure.