J.P. Morgan Chase Making Home Affordable Modification Program–Homeowners See Bankruptcy After Being Denied A Modification

Despite the opportunities for J.P. Morgan Chase homeowners to acquire a Making Home Affordable home loan modification, there are still some homeowners who continue to see bankruptcy as the end result to their home loan difficulties. Data from the Making Home Affordable Program has tracked numbers of some homeowners who were denied home loan modification assistance and fell into bankruptcy as a result. Sadly, homeowners with a variety of mortgage servicers, not just Chase, have seen bankruptcy when denied a trial or permanent home loan modification from the federal mortgage assistance program.

According to the November Making Home Affordable Report, data that tracked homeowners through October 2010 stated that Chase had 844 homeowners who were in the process of bankruptcy after their trial home loan modification was canceled. This number was down from the previous month which stood at 888 homeowners, which tracked data through September, but there were increases in the number of homeowners who faced bankruptcy when they were denied a trial modification. Again, according to the report, Chase had 3,365 homeowners who are in the process of bankruptcy as of October 2010, which was an increase from September’s data stating 3,093 homeowners were in that position.

Despite the fact that homeowners have continued to face problems where foreclosure or bankruptcy may be on the horizon, home loan modification assistance from the Making Home Affordable Program has seen increases in the number of permanent modifications that have been made throughout 2010. While there have been servicers like J.P. Morgan Chase who have seen increases in their modifications throughout the previous year, there are still many homeowners who are facing mortgage difficulties thanks to problems like unemployment.

Also, homeowners still complain that servicers are not doing all they can to process the maximum number of home loan modification plans that could potentially be made, but there are some servicers who have reported homeowners simply do not meet federal guidelines for home loan modification approval. Yet, many financial institutions have countered these difficulties within the federal modification program by offering proprietary home loan assistance through in-house modification initiatives.

While these home loan modification plans have not been perfect, as there are indications that seem to point out a problem of homeowners redefaulting in both federal and private programs, homeowners are still being prompted to contact their servicer or an approved housing counselor if financial difficulties arise. Again, some homeowners have been unable to avoid bankruptcy or foreclosure despite having modifications and extensions programs available, but there are still plans in place which could help homeowners avoid bankruptcy or the loss of their home to foreclosure.