Chase Home Loan Short Sales And Deed In Lieu Of Modification Plans–HAMP Data For Homeowners Seeking Modifications

According to recent Making Home Affordable reports, J.P. Morgan Chase saw an increase in the number of total of short sales and deed in lieu of foreclosure programs that had been made for homeowners after these individuals had failed to acquire either a trial or permanent home loan modification. Many homeowners are viewing these foreclosure alternatives as an optimal choice over foreclosure, and despite the fact that there have been some financial institutions that are still making these short sales and deed in lieu of foreclosure plans available, there are questions as to whether they are truly helpful or not.

Yet, in simple terms success, J.P. Morgan Chase saw an increase in the number of total short sales and deed in lieu of foreclosure plans that had been tracked within the Making Home Affordable Program according to the February 2011 report. For homeowners who were not accepted for a trial modification, the total number as of this report stood at 13,429, which was up from the previous month’s report of 10,954. Also, homeowners whose trial modification was canceled but were offered either a short sale or deed in lieu of foreclosure plan rose to 5,613 in the February 2011 report, which was up from 4,924.

However, despite the fact that homeowners are seeking out these short sales and deed in lieu of foreclosure programs, there are some indications that, particularly for short sales, homeowners may have seen a similar decrease in their credit score as they did when they went through the foreclosure process. While this has not stopped homeowners from seeking out one of these short sale opportunities, as many feel that a short sale is viewed in a more positive manner than a foreclosure, but this obviously will differ depending on a homeowner’s credit score, their financial situation, and other factors like missed payments or other areas of debt that may have also caused trouble and the inability of a consumer to meet these debt obligations.

Understandably, homeowners are in a position where they want to be free and clear of their home loan when financial distress has created a great deal of problems but there are some individuals who may benefit from taking action early as there are numerous foreclosure prevention opportunities available to not only J.P. Morgan Chase homeowners but those with a variety of mortgage servicers participating in the Making Home Affordable Program.

Yet, homeowners are, again, being advised to act early if they can show financial distress related to factors like unemployment, as not only are federal modifications available but many servicers are participating in certain Hardest Hit Fund foreclosure prevention options through state housing agencies. While these opportunities are not guaranteed to prevent foreclosure, some homeowners may be able to find the affordability they need on their home loan payment until they can get back on their feet financially and, as a result, avoid the need of a foreclosure alternatives program altogether.