J.P. Morgan Chase homeowners who are looking for either a short sale or deed in lieu of foreclosure plan to have seen increases in terms of the number of individuals who were given these forms of assistance after they were unable to qualify for the federal Making Home Affordable Program. Many homeowners who are unable to obtain a trial modification or had their trial modification canceled did see the option to either participate in a short sale or deed in lieu of foreclosure plan, as these alternatives offered through HAMP have made it so that homeowners in a particular situation where an underwater home loan is present or they are facing negative equity may be able to avoid a formal foreclosure.
While there have been mixed results in the modification program and many lenders have come under fire for their modification efforts both through the federal modification program initiative and proprietary homeowner assistance plans, in some cases homeowners are finding that when they are unable to acquire the modification they need to bring more affordability to their mortgage, these foreclosure prevention alternatives have been helpful when it comes to allowing homeowners to escape their mortgage commitment without doing a substantial amount of damage to their credit score.
For J.P. Morgan Chase, there were some increases in the number of total homeowners who were offered either a short sale or deed in lieu of foreclosure plan according to the most recent Making Home Affordable report. Homeowners who had their trial modification canceled, according to the December 2010 report, numbered at a total of 4,912 who saw either a short sale or deed in lieu of foreclosure plan offered, but the January 2011 report indicated a slight increase as there were 4,924 homeowners in the same category who saw a foreclosure alternatives plan offered.
Yet, homeowners who were not accepted for a trial modification within the Making Home Affordable Plan totaled 9,892, as of the December HAMP report, but January 2011 saw the total number of homeowners with Chase who were not offered a trial modification
but did see a short sale or deed in lieu of foreclosure plan number at a total of 10,954.
Understandably, there are Chase homeowners who have had difficulties, as this has been common with many servicers participating in HAMP, but these men and women who are attempting to either find foreclosure prevention aid, but are unable to for one reason or another, may be able to use these alternative resources through a short sell opportunity or deed in lieu of foreclosure program. These plans can do less damage to a homeowner’s credit, which can be helpful in other financial areas of their life and make reentering the housing market at a later date easier.
While there have been officials who are prompting more servicers to help homeowners find foreclosure alternative options when lost mitigation through modifications is unavailable or unhelpful, homeowners must understand that these plans are not guaranteed and, as a result, there are still some who have faced foreclosure. However, homeowners may be able to either contact a housing counselor, consult resources from the Making Home Affordable Program, or simply talk directly with their mortgage servicer if they are having trouble making mortgage payments or seek to qualify for one of these foreclosure alternative plans when foreclosure prevention efforts are unhelpful.