Homeowners with J.P. Morgan Chase in need of assistance with their home loan do have options outside of traditional home loan modifications thanks to extension programs available from the Making Home Affordable initiative. These expansion plans which are used by Chase and other financial institutions within the program are hoped to address homeowner needs which go beyond traditional home loan modification assistance, like issues related to second mortgages, unemployment, or foreclosure alternatives.
Modifications have been a way many homeowners have found affordability in their mortgage payment but foreclosure has been inevitable in some cases. Many financial institutions like J.P. Morgan Chase have been able to offer programs through the Foreclosure Alternatives plan which consists of options like short sales or deed in lieu of foreclosure plans. Homeowners who face inevitable foreclosure have taken advantage of these programs when certain conditions are met, and as a result, have been able to escape underwater mortgage situations or predicaments where financial distress was so severe that other foreclosure prevention options were no help.
Yet, homeowners do have opportunities to avoid the loss of their home before making it to these foreclosure alternatives plans as second lien modification programs and the Unemployment Program have also been used by servicers to assist homeowners in need. Obviously, second mortgages have been problematic for some homeowners as a primary modification only addresses one of their obligations and, for those with a second mortgage, this modification program may lower their payment requirement on their second lien, and provide the affordability they need to avoid the loss of their home.
However, unemployment has been a problem for J.P. Morgan Chase homeowners and homeowners with a variety of banks across the nation as long-term unemployment continues to strain various areas of the economy. Yet, the Home Affordable Unemployment Program may offer homeowners the opportunity to receive forbearance on their mortgage payment for three months, or more if a servicer deems it necessary, during which time they may be either given a reduced payment on their home loan or have their payments suspended entirely.
While these foreclosure prevention efforts have not been perfect and servicers like Chase have had their fair share of criticism, homeowners are still being advised to contact their servicer or a certified housing counselor to explore options which may benefit them if they are having trouble meeting their monthly mortgage payment. There are still refinancing options available to homeowners in a good financial position, but for those who have missed payments or risk defaulting on their home loan, addressing issues soon by working with their servicer may be the only option a homeowner has of avoiding foreclosure.