J.P. Morgan Chase’s home loan modification assistance plans have offered homeowners the opportunity to forgo foreclosure through various efforts like traditional modifications, modifications on second liens, the Unemployment Program which offers a mortgage payment forbearance, and alternative assistance opportunities through in-house initiatives, but there have been problems which many homeowners have faced when seeking a HAMP foreclosure prevention plan.
Obviously, servicers like Chase have seen an increase in the number of permanent home loan modifications that have been made and, according to Making Home Affordable Reports, these foreclosure prevention programs do still continue to offer homeowners assistance, despite the fact that many are concerned that foreclosures are beginning to catch these permanent modification plans. While Chase is not the only servicer who is reportedly seeing slower modification conversions, there are indications that in-house home loan modifications are outnumbering the federal home loan assistance plan, which may be one solution for homeowners who are having trouble within the federal mortgage modification assistance program.
However, homeowners still argue that there are too many difficulties which must be overcome before a permanent modification, or even a trial home loan modification, will be offered as there are homeowners who have faced problems with lost paperwork, being asked to repeatedly submit documentation, and various other issues which have prevented them from qualifying for a federal home loan assistance plan.
While it’s obvious that Chase homeowners do, in some cases, simply not meet federal guidelines to obtain a home loan modification plan, there are some opportunities for these individuals to find foreclosure prevention assistance even if a Making Home Affordable Program modification is denied. Again, alternative modifications directly from servicers has been helpful for homeowners in need of foreclosure prevention, but some advisers have stated that home loan counselors through housing counseling agencies have been able to increase the likelihood that a homeowner will find either success in the modification program or affordability for their personal financial situation.
Homeowners typically contact their mortgage servicer first if a modification is needed or financial difficulties arise, but the Making Home Affordable Program and resources like the Department of Housing and Urban Development can offer leads to reputable, certified housing counseling agencies which may help homeowners either better organize their finances in such a way that allows them to meet their mortgage payment and other debts or these advisers can also guide homeowners through the modification process in some cases, which obviously may increase the likelihood of success if a homeowner qualifies.
While there are also some state-specific programs available to homeowners through the Hardest Hit Fund, with modifications still remaining one of the more popular methods homeowners are using to avoid the loss of their home but both homeowner participation, the modification program in general, and mortgage servicers have not been perfect when it comes to finding affordability in every mortgage situation. Yet, homeowners who consult their servicer or a housing counselor early may stand a better chance at finding the foreclosure prevention plan they need but if they are unsuccessful there are also alternatives to federal modifications which may provide the affordability a homeowner needs to avoid the loss of their home.