J.P. Morgan Chase is one of the servicers to offer home loan assistance for delinquent homeowners after they have been unable to acquire either a trial or permanent home loan modification within the Making Home Affordable Program, but there have been mixed results when it comes to servicers and these alternative modification options, as some homeowners have been helped by a variety of financial institutions who offer these in-house options, while others say that even alternative modifications still have their problems.
Obviously, there are issues which have arisen within the federal Making Home Affordable Program, as there are homeowners who feel that the process which they must go through is flawed in that some have reported banks repeatedly lost paperwork, required excessively high payments for homeowners in need of more affordability in their mortgage, and others believe that they were simply not allowed a modification for little or no reason. Yet, the servicers have often pointed out that when it comes to federal modifications, they must adhere to the guidelines of the program and some homeowners have not properly followed this process, in that many may either avoid steps like showing they are financially distressed or some homeowners may have a mortgage payment that is already at or below the level where a modification would bring their payment obligation.
Yet, while there have been complaints about alternative modifications as well, there are reports that indicate these servicer-direct modification plans have helped homeowners in greater number than the federal modification program, which may give some a viable option for alternative foreclosure prevention assistance. However, there has, again, been problems in this area as well and some feel that alternative modifications are either not being used properly by certain servicers or may simply be unavailable and unaffordable.
According to Making Home Affordable Reports, J.P. Morgan Chase did see the differing results in certain areas of the modification program, in terms of alternatives which were offered to homeowners after being denied federal modification assistance. As an example, the December 2010 Making Home Affordable Report stated that for homeowners whose trial modification was canceled, a total of 61,491 had seen alternative modification options made available, while the January report stated that this same group of homeowners saw that total drop to 61,275. However, for homeowners who were not accepted for a trial modification, the total numbers from December 2010 to January 2011 increased from 101,136 to 102,739.
These reports are simply tracking homeowners who either lost their trial modification or were denied an assistance plans, and does not constitute the entirety of any alternative modification efforts made by Chase. However, as with every other financial institution participating in these proprietary modification programs, they are not a guarantee for homeowners and, again, there are still numerous complaints from homeowners with a variety of servicers who feel that these alternative plans, as well as the federal modification program, need to be restructured if more homeowners are to be helped. While there are some homeowners who feel modifications are more of a hindrance than a help, advisers still counsel homeowners to consider these foreclosure prevention options or consult a housing counselor for more help on applying for modification, in the hopes that there may be some individuals who can be aided by these foreclosure prevention initiatives, even if the programs may have their faults.