Chase homeowners facing bankruptcy saw mixed numbers in reports released by the Making Home Affordable Program for February 2011. Many servicers have had difficulties with homeowners either ending up in foreclosure or filing bankruptcy as a result of not getting the foreclosure prevention assistance they need through affordability efforts from home loan modification plans, but there are still options that homeowners who are currently struggling to meet their mortgage payment have in the hopes of avoiding the loss of their home loan or choosing to file bankruptcy.
According to the most recent data from HAMP the total number of homeowners with J.P. Morgan Chase who were in the process or had completed bankruptcy after not being accepted for a trial modification numbered at 4119, which was up from the previous month’s 3964. Yet, the total number of bankruptcy filings for homeowners whose HAMP trial modification was canceled was down from 834 to 782 according to the February report. While this decrease in the number of total bankruptcies in progress or having been made could be the result of certain loans being removed from this servicer’s portfolio, there have also been some reports that have stated that bankruptcy filings fell in the first quarter of 2011.
However, homeowners with J.P. Morgan Chase or other financial institutions need to be aware of alternative foreclosure prevention options and affordability programs that may be helpful for their particular situation so that the loss of their home or the need to file bankruptcy can be avoided. While there are proprietary and federal home loan modifications that are available from a variety of these financial institutions, homeowners may still want to consult a housing counselor like those approved by the Department of Housing and Urban Development or recommended by the Making Home Affordable Program. Homeowners who can consult one of these housing counselors may be able to find guidance through the modification application process or could find that they are in a better position to take advantage of the reduced mortgage payments they have been granted through a home loan modification plan.
Homeowners do need to realize that servicers have not been perfect in the implementation of these plans and options like programs available directly from states, like the Hardest Hit Fund initiative, could provide alternatives to these modification programs for homeowners who may be suffering from unemployment or negative equity, as an example. There are some stories where homeowners have faced an incredibly difficult battle to simply get a trial modification, and many are still angry with their bank, but there are some homeowners who are simply unable to qualify for a federal home loan modification due to the guidelines that servicers must adhere to, so exploring alternatives to a federal modification may also be beneficial.