J.P. Morgan Chase has seen increases in the number of bankruptcies that homeowners may have faced due to either being denied a trial modification or having their trial modification canceled, as there are homeowners still suffering from financial distress that has either made the modification program unhelpful for their situation, or in some instances, homeowners feel that servicers and the modification program overall have been unsuccessful at properly implementing foreclosure prevention methods that are sustainable for those in need. Despite the fact that many servicers, like J.P. Morgan Chase, have seen increases in the number of permanent modifications they have made, there are still problems like foreclosure and bankruptcy being seen by homeowners with a variety of financial institutions.
According to the most recent Making Home Affordable Report, the number of bankruptcies reportedly either in progress or having been processed with Chase for homeowners whose trial modification was canceled number at 815 in December of 2010, but that number increased to 834, in January 2011. Yet, for homeowners who were not accepted for a trial modification initially, the number of bankruptcies tracked as of the December 2010 report stood at 3669, while that number in January 2011 increased to 3964.
Understandably, foreclosures and bankruptcies are still a problem for many homeowners, despite increases in modifications from both federal and in-house programs implemented by various servicers. There are issues still facing homeowners, like problems in the foreclosure prevention process, the federal home loan modification guidelines, and the implementation of these modification efforts by some servicers, but homeowners are still being prompted to explore these options, as well as, other foreclosure prevention opportunities.
While Chase does still offer modifications, some homeowners have had a great number of complaints against not only this particular bank but numerous mortgage servicers as well. Yet, aside from these modification plans there are also state-specific foreclosure prevention programs that may be helpful for some homeowners who are behind on their mortgage, unemployed, or facing negative equity. The results from various servicers within the modification program as some homeowners have reported success, while others feel both servicers and the modification program in general have a great deal of flaws that need to be addressed.
However, there are some homeowners who may benefit from either contacting their servicer early or consulting with a Making Home Affordable housing counselor and resources like HOPE NOW, which may be able to answer questions about the modification process or address other issues that homeowners have in relation to their financial situation and meeting their home loan payments. Homeowners do need to remember that these modification programs are no guarantee when it comes to preventing foreclosure and there have been issues with various financial institutions, but these foreclosure prevention plans from major servicers like Chase and numerous state housing agencies are still in place and can be consulted by homeowners, as there have been success stories which have brought about foreclosure prevention in cases where homeowners faced the potential loss of their home.