Delinquent Chase Homeowners And The Federal Modification Program–Are HAMP And In-House Plans Still Helping?

Delinquent homeowners with J.P. Morgan Chase have typically turned to the federal modification program as a way to find more affordability in their monthly mortgage payment, but the number of homeowners who are more than 60 days delinquent on their mortgage with Chase has decreased, according to the most recent reports, despite the fact that there have been complaints waged against not only Chase Bank, but numerous financial institutions as well. While trial modifications are still being sought out by numerous homeowners, there are also in-house home loan modification plans that distressed homeowners have turned to, but there are questions as to whether modifications in general are still helpful.

According to the federal Making Home Affordable Program in December 2010, J.P. Morgan Chase had a total of 195,841 estimated homeowners who were eligible for HAMP since they were 60 days or more delinquent on their mortgage. However, the January 2011 report stated that this number had decreased to 193,413, with an increase in the number of trial plans offered being seen as well.

Yet, there are many homeowners who have been exasperated by the modification process or the fact that they may have been denied home loan assistance by their servicer within the federal modification plan. Many homeowners have fallen into the camp of those who feel servicers are doing little to offer foreclosure prevention through these modification efforts, as federal modification plans are either too difficult to acquire, too expensive to sustain, or when in-house modification plans are concerned, similar problems arise as well.

Proprietary home loan assistance has been an alternative for numerous homeowners, but there have also been issues raised within these programs as many homeowners feel they are seeing similar problems and some servicers may simply be unhelpful despite these in-house programs being implemented at their discretion. The reports that track these proprietary home loan modifications have stated that the overall number of homeowners helped through these plans have increased more sharply and helped a greater number of homeowners than the federal modification plan, but homeowners are still having issues when it comes to qualifying for these specific forms of modification assistance or maintaining their mortgage payment after this form of aid has been offered.

Understandably, servicers like J.P. Morgan Chase have seen ups and downs in the modification program, even though they have seen increases in the number of active permanent modifications according to federal reports. Yet, homeowners need to understand that modification programs and the practices implemented by financial institutions are not perfect and, as a result, extension plans and housing counselors have been offered to homeowners as a way to either addresses specific issues or help guide these individuals through the modification process. While there are still foreclosures that may be seen, homeowners can take advantage of options like short sales, deed in lieu of foreclosure plans, or with the help of an approved housing counselor, homeowners may be able to make it through the modification process with less stress.