Unemployed homeowners with J.P. Morgan Chase may soon have more options for assistance through the Hardest Hit Fund initiative that has been implemented in numerous states where factors like job loss and negative equity have created a substantial amount of distress in the lives of homeowners and the housing markets of these particular areas. Major problems in states like California, Michigan, Florida, and Arizona have led to the necessity for these programs as some homeowners were simply not seeing the results they needed when it comes to foreclosure prevention through the federal modification initiative.
Options like the Home Affordable Unemployment Program and traditional modifications were parts of the overall Making Home Affordable plan that were hoped to address the issues homeowners had across the nation and, initially, it was believed that this program would bring about aid to over 3 million homeowners, but that goal is unlikely to be met before the program’s termination. However, with these state-specific plans being implemented by various housing agencies, major banks like Chase may be able to offer an alternative for homeowners who are struggling to stay in their home as a result of unemployment.
According to an article on HousingWire.com, Chase is hoped to finish putting these programs into place in the month of May, which could bring about options for unemployed homeowners similar to modifications or, in some states and with other servicers, the HHF programs have allowed for interest-free loans or grant-like assistance that will help homeowners meet their monthly mortgage payment for a set period of time. While unemployment is one of the major issues facing homeowners, other individuals have looked for principal reduction opportunities when negative equity is a problem on their mortgage.
While there are some programs and financial institutions that are working to address underwater home loans, Chase has been one bank that feels principal reductions for homeowners who are in a position to meet their monthly mortgage payment is simply not an option and, as a result, homeowners who may not be facing foreclosure or default as a result of negative equity might not have a principal reduction opportunity available.
Yet, each homeowner’s specific case will be different and may need certain issues addressed, but unemployment or cutbacks at a homeowner’s place of employment are some of the main causes of financial distress for homeowners. These individuals may have been in a position to easily meet their mortgage payment but due to problems at their job are now in a position where their debts are beyond their means to repay. While major banks like Chase and Bank of America are just two of the institutions participating in the Hardest Hit Fund initiative, there are also programs that are hoped to offer more unemployment aid in the coming months as the Emergency Homeowner Loan Program is another route unemployed homeowners may have when it comes to foreclosure prevention.
For homeowners who are unemployed and facing financial distress, advisors have often counseled they either contact their mortgage servicer, their state’s housing agency, or even consult with housing counselors available from the Hope Hotline and the Making Home Affordable Program.