J.P. Morgan Chase Foreclosure Prevention–Home Loan Modification Program Trial Plans To Permanent Modifications

J.P. Morgan Chase homeowners who are seeking a foreclosure prevention plan from the federal home loan modification program are typically first offered a trial plan before they may enter into a permanent home modification, but there have been difficulties for homeowners to convert their trial plan and find a permanent modification on their home loan. Homeowners have obviously grown frustrated at being in a trial modification period for longer than is usually required, but not all problems with converting from a trial modification to a permanent modification plan are the fault of servicers.

Understandably, both homeowners and financial institutions like J.P. Morgan Chase have made their mistakes when it concerns home loan modifications and foreclosure prevention practices. However, there are issues some homeowners have with servicers when it comes to offering permanent assistance as there are reports that aged trial modifications have become problematic within the home loan modification program overall. According to the Making Home Affordable November report, J.P. Morgan Chase had 4,642 aged trial modifications, meaning that homeowners had been stuck in a trial period for for at least six months or more.

Typically, homeowners are only required to complete a 3 to 4 month trial period, depending upon their risk of defaulting on their mortgage, but homeowners who have been stuck in a trial modification for almost double the amount of time which was required are obviously in a position where they are quite frustrated with their servicer. There have been questionable foreclosure practices on the part of some servicers which have led homeowners to believe that these financial institutions are not truly offering as many foreclosure prevention modifications as they could, but there are also some issues which are coming from homeowners which may be preventing both trial and permanent modifications.

While servicers and homeowners are neither perfect when it comes to adhering to modification qualifications and principles, there are some homeowners who are still in a position where they are struggling with their home loan in such a way that a trial modification payment is still too costly and they are missing payments or redefaulting within the modification program. Chase did see an increase in the number of permanent home loan modifications they made in 2010, but reports for all major servicers have indicated that these conversions have begun to slow, which has many questioning what the source of these problems may be.

There is hope for homeowners who are in need of foreclosure prevention assistance as reports indicate proprietary home loan modifications are becoming more popular for homeowners and are seeing a higher number of homeowners find the foreclosure prevention aid they need outside of the federal assistance plan. Yet, homeowners who may be having difficulty within the home loan modification program has typically been advised to either contact their servicer or an approved housing counselor for assistance on their mortgage predicament. While consulting housing counselors from approved sources like HUD has helped some homeowners both during and before the modification process, the sooner a homeowner addresses problems in their financial life the higher the likelihood that they may find an affordable foreclosure prevention option which could allow them to more easily move through either the modification process or explore options from extension programs as well.