J.P. Morgan Chase home loan assistance plans through alternative modification efforts have been able to prevent foreclosure by offering homeowners in need a lower mortgage payment, but many homeowners are still turning to federal mortgage assistance plans and may be unaware of these alternative options to traditional home on modifications. Others say, there have been troubles between homeowners and servicers within federal modification programs, and while no foreclosure prevention assistance plan has been perfect, it’s hoped that more homeowners may gain the foreclosure prevention aid they seek through either of these alternative modification plans or extension programs, when a traditional home loan modification will not do.
Homeowners, as an example, who may be suffering from unemployment do have the opportunity to participate in the Home Affordable Unemployment Program, which can bring about more affordable payments for a homeowner or offer a forbearance for at least three months. Obviously, unemployment is one of the main causes behind homeowner difficulties, but this unemployment program has been offered since many homeowners who are relying on unemployment benefits as their only source of income may not be able to qualify for a home loan modification.
Yet, J.P. Morgan Chase is one of the home loan servicers who does also participate in proprietary, in-house home loan modification efforts which, overall, have been reported to have outpaced federal home modification assistance plans in the latter part of 2010. While there are concerns that foreclosures will continue into 2011 and possibly outnumber those that were made in 2010, homeowners are concerned that foreclosure prevention plans may be unhelpful if more opportunities are not made available.
However, these extension programs and alternative home loan assistance plans have been seeing success despite the fact that the federal home loan modification program is beginning to slow. While there have been questions as to whether J.P. Morgan Chase and other mortgage servicers have properly processed foreclosures, as there are those who feel servicers in general have not done all they can to offer home loan assistance, it’s believed that homeowners who either contact their servicer early or work with a housing counselor which is approved by either HUD or the Making Home Affordable Program, may have a better shot at finding the foreclosure prevention assistance they need.
While it is not a popular choice, in a worst-case there are foreclosure alternative programs, like for sales or deed in lieu of foreclosure plans which may help homeowners avoid foreclosure process if they are unsuccessful at acquiring either a home loan modification or completing a foreclosure prevention extension program. Again, foreclosure prevention plans and extension programs have been used by many major mortgage services, like Chase, but there are still troubles that remain within these efforts that many feel need to be addressed so that further, widespread foreclosures will not continue into the new year.