J.P. Morgan Chase is one of the numerous financial institutions participating in the home loan assistance plan from the Making Home Affordable Program, which has offered foreclosure prevention assistance to homeowners who are in a particularly difficult situation and in need of lower, more affordable monthly mortgage payments. Yet, there are some reports which have stated that servicers are offering, in certain cases, alternative repayment plans that are outside of home loan modification program guidelines or alternative modification initiatives directly from servicers.
According to the December 2010 Making Home Affordable Report, J.P. Morgan Chase had offered a total of 315 payment plans, which were essentially new payment arrangements with borrowers that did not involve a formal modification, for homeowners who had there trial modification canceled and 929 of these payment plans, in total, had been offered to homeowners who were not accepted for an initial trial modification.
Obviously, the methods that servicers like Chase have used to assist homeowners have had to vary and their methods that were used to reduce a homeowner’s payment as, in some cases, simple interest rate reductions or term extensions on home loans were not enough to keep homeowners from avoiding the loss of their home. Some homeowners, with a variety of servicers, have even been unsuccessful at making modification payments as many feel that their restructured payment is still too high even when a federal or servicer-direct modification plan has been offered.
However, with expansion plans, continued modification efforts, and agreements that can be made between borrowers and lenders still available, there are options for homeowners who may be in need of foreclosure prevention as, these home loan assistance plans, as well as programs implemented from various state housing agencies, are all working to prevent further foreclosures across the country as unemployment and underwater home loans still continue to wreak havoc for numerous homeowners.
While there are many plans directly from Chase and other financial institutions, homeowners can also benefit, in many cases, from simply consulting a housing counselor or credit counseling agency to help them restructure their financial life and goals in a way that will allow them to meet mortgage payments and avoid missing various debt obligations. While there are no guarantees in these foreclosure prevention efforts, homeowners who have had extended trials and difficulties related to home loan modifications or other foreclosure prevention plans may have further options if they are continually met with trouble or unaffordable options on proposed foreclosure prevention plans from their servicer.