J.P. Morgan Chase’s home loan modification program from the Making Home Affordable initiative had seen an increase in the overall number of permanent home loan modifications made in 2010, but between November and December, homeowners saw a drop in the number of permanent home loan modifications that were active.
Obviously, there have been concerns over the Making Home Affordable Program as many indications have stated that the governmental foreclosure prevention effort has begun to slow as more homeowners are facing foreclosure, being denied permanent modifications, or defaulting while a home loan modification is in place. Understandably, there are issues that need to be addressed within the home loan modification plan, but recent efforts to repeal the modification plan have many homeowners concerned as there is still a need for homeowner assistance in various areas across the nation due to extended unemployment and underwater home loan difficulties.
However, J.P. Morgan Chase, again, did see a decrease in the number of permanent modifications and this could point to the fact that homeowners are simply in a financial position where they cannot even afford a modified mortgage payment or these reductions in permanent modifications could point to program deficiencies within the home loan modification program. Yet, J.P. Morgan Chase reportedly had 67,722 active permanent modifications in November but saw a decrease to 66,441 active permanent modifications in December, according to Making Home Affordable Reports.
While these programs are still available to J.P. Morgan Chase homeowners, and others whose servicer is participating in the Making Home Affordable Program, there also a proprietary home loan modifications available directly from mortgage servicers which have, reportedly, outnumbered these permanent federal modifications over the past months. Also, in particularly hard-hit states, there have been state-specific programs launched from the Hardest Hit Program that can also offer foreclosure prevention and unemployment home loan assistance, as well as, underwater home loan aid.
Homeowners have been prompted to contact their servicer early if they are experiencing difficulties related to making their mortgage payment, but housing counselors are also available from sources like HUD or the Making Home Affordable Program and these forms of assistance may increase the likelihood that a homeowner has of finding the affordability they need on their home loan, but they are no guarantee. There are still issues that need to be addressed within the federal modification plan, but homeowners who fear the loss of their home through foreclosure do still have various opportunities for mortgage assistance and foreclosure prevention, but again, taking an early initiative to seek out these options may help homeowners find a sustainable assistance plan that will allow them to avoid the loss of their home.