Foreclosure prevention programs from J.P. Morgan Chase through the Making Home Affordable home loan modification plan have been made available as a way to offer more affordability for homeowners who are facing difficulty related to their personal finances and their mortgage. However, foreclosures have been a major problem for numerous homeowners across the nation and there are analysts who feel that foreclosures may continue into the new year at a pace that could cause a great deal of homeowners to be displaced from their home.
Questions over whether servicers like Chase have been able to prevent homeowner foreclosure through the modification program have arisen as there are numerous individuals who feel that these foreclosure prevention efforts from the federal modification program, which has been implemented by some of the nation’s top servicers, are said to have slowed and, as a result, more homeowners are facing the loss of their home.
The most recent Making Home Affordable data suggests that there are still increases in the number of homeowners who are not qualifying for permanent home loan modifications. November’s Making Home Affordable Report stated that for J.P. Morgan Chase, there were 20,900 foreclosure starts and 7,059 foreclosure completions, as of October 2010, for homeowners whose trial modification was canceled. These numbers are up from the previous month which reported that there were 20,336 foreclosure starts and 6,039 for closure completions.
Also, for homeowners who were not accepted into the trial modification program, there were 27,744 foreclosure starts and 7,808 foreclosure completions during the same timeframe. These numbers were also up from the previous month which reported that Chase had 22,022 foreclosure starts and 6,733 foreclosure completions.
Yet, this has begged the question by many of whether servicers are to blame or if the modification program is simply unable to help homeowners who are facing the loss of their home through foreclosure. There have been troubles related to foreclosure processes on the part of many servicers and it has led homeowners to question whether these financial institutions were actually giving homeowners opportunities for foreclosure prevention through modification plans as there were questionable processes on the part of some institutions, but there are also indications that show homeowners are redefaulting within the modification program, which obviously points to personal financial problems that cannot be solved through a simple modification.
There are, however, opportunities for Chase homeowners and other homeowners with various financial institutions to qualify for proprietary home loan modification plans and it has been reported that these in-house initiatives are offering more homeowners the opportunity to find foreclosure prevention assistance through a modification plan other than the federal mortgage modification program. While there are still problems between homeowners and servicers, and there have been calls by many for servicers to up their efforts concerning foreclosure prevention, with federal and proprietary modifications still in place and extension programs that address particular homeowner issues, it’s hoped that more foreclosures can be prevented in the coming months, but factors like long-term unemployment and continued economic hardships may provide a difficult obstacle for both homeowners and mortgage servicers when it comes to preventing foreclosure.