J.P. Morgan Chase homeowners have had opportunities for foreclosure prevention efforts through home loan modifications, most notably through the Making Home Affordable Program, but over the past months more issues have arisen which have needed the attention of servicers and with predictions for housing in 2011, there are questions as to whether foreclosure prevention efforts from the federal modification program will be enough to address these issues that homeowners face and provide the opportunities homeowners need to help them in various stages of home loan distress.
Predictions for 2011 are mixed concerning housing as there are some who feel that overall economic recovery may lead to the ability of more homeowners to meet their mortgage payment or at least qualify for some form of assistance, but there are concerns over underwater home loans which may be present for homeowners with servicers like J.P. Morgan Chase, among others, which may need to be addressed.
Also, foreclosure prevention efforts through the federal home loan assistance plan have begun to slow, according to some reports, but servicers did see an increase throughout 2010 in the number of permanent home loan modifications which were made. While J.P. Morgan Chase is one of the many servicers participating in the Making Home Affordable Program, there are also in-house home loan modification plans from Chase and other financial institutions which are reportedly outpacing federal assistance plans, in terms of comparisons made to foreclosures.
While there are some who feel that proprietary modifications from servicers may begin to become more popular than the federal modification program, as in-house modification numbers are, again, outpacing federal assistance plans, there is concern over what will become of homeowners with underwater problems on their mortgage as negative equity issues have been treated differently by some financial institutions. There are some banks that allow homeowners to earn forgiveness on their principal while continuing to make payments, but others have stated that forgiving a homeowner’s mortgage principal does little to help with the affordability a homeowner faces on their monthly mortgage payment.
Yet, for J.P. Morgan Chase homeowners, and other homeowners with servicers participating in HAMP, both traditional and alternative modifications are available to help with these affordability issues, but programs like the Home Affordable Foreclosure Alternative plan may also be beneficial for homeowners who fear that troubles with their home loan may lead to foreclosure. While homeowners can consult a housing counselor to help with personal finances and assistance through the home loan modification process, servicers may also be contacted directly by homeowners and, for those in need, modification efforts through both in-house and alternative programs may address issues at the present time related to underwater home loans or homes that are guaranteed or owned by Fannie Mae and Freddie Mac may have underwater refinancing options available as well.
While these plans are not always guaranteed for homeowners, exploring these options can help underwater homeowners find a lower mortgage payment in some cases, even if a principal reduction is not offered.