JPMorgan Chase Home Loan Assistance Programs–Foreclosure Prevention Through Mortgage Debt Relief Plans

J.P. Morgan Chase homeowners in need of an assistance program which may help with foreclosure prevention efforts and mortgage debt relief have opportunities through various programs enacted by both the federal home loan modification program and directly from J.P. Morgan Chase. Throughout 2010 homeowners had taken advantage of home loan modifications from the Making Home Affordable Program, but as more troubles arose for homeowners in various mortgage situations, further programs were needed in order to assist homeowners with their foreclosure prevention efforts and offer more affordability.

While there are indications that the federal modification program has been slowing, servicers like J.P. Morgan Chase do still offer these foreclosure prevention options and debt relief assistance plans for homeowners who will be in need of foreclosure prevention in 2011. There are still traditional home loan modification programs available to homeowners from the Making Home Affordable Program, as servicers like J.P. Morgan Chase have an increase in permanent modifications from January 2010 through November, according to the most recent reports.

Also, Chase participates in the Second Lien Modification Program, the Home Affordable Unemployment Program, and homeowners do have opportunities for foreclosure alternatives if a foreclosure prevention plan cannot be found. Obviously, these extension programs from the Making Home Affordable Program may address issues for homeowners who are struggling with unemployment or with a second mortgage, but they are no guarantee when it comes to preventing the loss of a homeowner’s property.

There have been cases where troubles have arisen within these foreclosure prevention efforts and, as a result, homeowners have still lost their home. Months ago, there were homeowners who were unable to benefit from a traditional home loan modification because they were unemployed and living off of unemployment benefits as their only income. This, obviously, was not a sustainable form of income and led to many homeowners redefaulting despite having a home loan modification in place. Yet, homeowners with Chase and other financial institutions may be able to apply for an unemployment forbearance opportunity which can be beneficial by offering at least three months of unemployment assistance for homeowners who are still seeking a job.

Yet, there have been cases where homeowners have simply been unable to either find an income that would allow them to continue making payments or qualify for a home loan modification, and as a result, there have been men and women who turned to foreclosure alternatives like for sales and deed in lieu of foreclosure plans with their servicer.

Homeowners in these situations have not always been helped by these programs, though, but good news has come in the form of proprietary modifications, which can offer in-house assistance to homeowners who may be in a bad financial situation but are unable to qualify for a federal assistance plan. Alternative modifications directly from servicers like Chase may offer the option for homeowners to receive a modification, even if it is not from the federal assistance program.

These assistance programs are in place to not only prevent foreclosure but also provide the affordability homeowners need so they may continue on their path to mortgage debt relief.  Yet, some homeowners are still turning to refinancing options as well.  While home loan interest rates remain low, homeowners looking for mortgage debt relief are still opting to refinance for shorter mortgages, but there are those who have the option to refinance for a lower mortgage rate and longer term to gain a more affordable monthly payment too.

Yet, homeowners who are in a difficult financial position may want to contact either their mortgage servicer or an approved housing counselor for help through the modification program or with general assistance when it comes to exploring foreclosure prevention options or refinancing for more home loan affordability.