Homeowners who participate in a J.P. Morgan Chase home loan modification program may receive a lower interest rate and a mortgage term extension as a way to lower their monthly mortgage payment obligation. Homeowners who have been in a difficult position with their home loan had, at times throughout 2010, attempted to refinance their home loan in the hopes of locking in a lower mortgage interest rate so that a lower monthly mortgage payment may follow.
However, homeowners who may have been in a poor financial position or who may have been in a negative equity situation were usually unsuccessful at their attempts of refinancing for a lower interest rate. Yet, the most recent report from the Making Home Affordable Program stated that servicers like J.P. Morgan Chase used an interest rate reduction 100% of the time for homeowners who are in an active permanent modification and over half of these homeowners received a term extension.
There were also some individuals that received a principal forbearance on their home loan, but when it comes to offering affordability through home modification programs, many servicers has been offering these rate reductions, term extensions, or a combination of both as a way to provide a lower monthly mortgage payment for homeowners who are in a distressed financial situation. Yet, there are those who have questioned whether more needs to be done since there are homeowners who are failing to acquire these permanent modifications available from servicers within HAMP.
Obviously, Chase and other financial institutions have attempted to help homeowners find more affordability through lower monthly mortgage payments, but this has not always been successful in preventing homeowners from facing foreclosure. There are also still many homeowners who feel that mortgage servicers are not doing all they can to prevent the loss of homes across the nation as reports of still state the Making Home Affordable Program has begun to slow.
While there have been both successes and failures from servicers within the federal modification plan, homeowners who are looking to either reduce their interest rate or simply lower their monthly mortgage payment in the hopes of finding more affordability in their mortgage may be able to acquire these options from either a proprietary home loan modification or the federal Making Home Affordable Program.
Again, reports have stated that home loan modifications within the Making Home Affordable Program have begun to wane, but homeowners may have opportunities from servicers like Chase for in-house assistance or may be able to consult a housing counselor to help them with their financial situation in the modification process.
Obviously, foreclosures are still a problem for numerous homeowners, but modification efforts are still available for homeowners and methods for reducing mortgage payments are still being implemented by a wide range of servicers, so homeowners who fear difficulties related to their mortgage payments have been prompted to address these issues with their servicer or a certified housing counselor early so that the proper measures may be taken to give them that chance at avoiding the loss of their home.