Foreclosure Prevention Through J.P. Morgan Chase Home Loan Modification Program–Are Homeowners Finding Aid?

J.P. Morgan Chase is one of the financial institutions who have used home loan modifications from the Making Home Affordable Program as a way to offer foreclosure prevention for homeowners across the nation. However, questions as to whether homeowners are finding the assistance they need through these modification efforts have arisen as concerns over the Making Home Affordable Program have recently come to light thanks to a Congressional Oversight Panel review.

Many homeowners have waged complaints against a variety of servicers and, for major financial institutions like J.P. Morgan Chase, they have not escaped criticism from homeowners who have attempted to find affordability through these home loan modifications. There are homeowners who have accused servicers of extending trial modification plans for too long, denying homeowners a modification for seemingly no reason at all, or offering modification agreements that are simply too expensive for a homeowner to meet, thus forcing them into foreclosure.

While factors like unemployment and second lien’s on homes have created some of these affordability issues, servicers like J.P. Morgan Chase have quickly pointed out that in-house modifications which may be available to homeowners are also in place and, according to reports which survey the overall proprietary modification landscape, the in-house, alternative modifications are helping more homeowners than the federal program.

Obviously, in-house modifications vary from servicer to servicer, but many feel that these alternative programs which offer modification assistance to homeowners could be more helpful simply because financial institutions who service these mortgages can tailor a program to fit a homeowner’s needs better than a federal program which has universal guidelines which servicers must meet.

Understandably, the modification program and financial institutions overall have not been perfect in the implementation of these foreclosure prevention efforts, and homeowners have simply failed to qualify in many cases, but there are still mortgage modification opportunities available for the remainder of 2010 and these foreclosure prevention modifications will continue into 2011.

Making Home Affordable Program modifications and extension programs are in place to address homeowner issues where factors like unemployment, a second lien, or an underwater mortgage may be present, but servicer modification assistance and alternative payment plans may also be helpful for homeowners outside of these federal assistance options. While there is no guarantee for homeowners to find the affordability they seek in these foreclosure prevention plans, many advisers are still prompting homeowners to either contact their mortgage servicer, or seek out assistance from housing counselors recommended by programs like the Making Home Affordable Program or the FHA for further home loan assistance.