Delinquent Chase homeowners in need of mortgage assistance to prevent foreclosure have typically turned to the Making Home Affordable Program as a way to find more affordability in their monthly payment obligations on their home loan. While reports have been mixed concerning the modification program, Chase did see a decrease in the number of delinquent homeowners who were more than 60 days behind on their monthly mortgage payment.
Obviously, homeowners who have been falling behind on their mortgage are usually finding themselves in a situation where unemployment is either the cause or, depending on the type of mortgage they have, underwater home loans have also been problematic in that negative equity has led to costs which some homeowners simply cannot meet. However, J.P. Morgan Chase is one of the many servicers that participate in the federal modification program and also provides in-house modification assistance as well, but there are also indications that have shown delinquent homeowners have begun to drop with many servicers in the modification plan.
The December 2010 Making Home Affordable report indicated that Chase had 195,841 delinquent homeowners who were 60 days or more behind on their mortgage payments. This number is a decrease from the November report which stated that 203,594 homeowners were delinquent for 60 days or more, with the data coming from the months of October and November respectively.
Yet, there is concern that this decrease in delinquent homeowners may not be the result of successful home loan modification efforts or homeowners being in a position where they can afford their home loan, but rather, some homeowners may have simply been denied a home loan modification and faced foreclosure as a result. There are still homeowners who feel that the home loan modification effort needs restructuring due to the fact that many are finding it difficult to gain the assistance and mortgage affordability they need, but there are also calls for the termination of the program as it has not met its initial goal in terms of the number of homeowners who have been aided.
While around 77% of homeowners who apply for a trial modification are delinquent on their home loan, lower interest rates and term extensions have helped correct some mortgage payment problems that homeowners are facing, but there are those who have seen better results from proprietary modifications or have had to turn to programs like the Unemployment Program or simply resign themselves to the fact that they were going to lose their home and sought out a deed in lieu of foreclosure plan or short sell as a result.
Modification programs from Chase and other major servicers are still in place, and according to this latest report these delinquencies that homeowners are suffering from decreased, but it’s hoped that no matter what the cause of a reduction in delinquencies happens to be, more homeowners will find the affordability they need in 2011 so that they can continue making their home loan payments and widespread foreclosures will begin to drop.