Homeowners with J.P. Morgan Chase who are looking for alternative modification options outside of the federal home loan modification initiative may have opportunities for alternative plans from proprietary home loan modification initiatives, but there are still some issues that homeowners face in this area and have led to questions as to whether some servicers are allowing homeowners to participate in these in-house home loan modification plans. Yet, according to reports from the Making Home Affordable Program, there have been some increases in the number of alternative modification plans made to homeowners who were unsuccessful when pursuing a federal modification.
According to the February 2011 Making Home Affordable report, J.P. Morgan Chase saw an increase in the number of alternative modification agreements made with homeowners who were not accepted for a trial modification as the number increased from 102,739 in the January 2011 report to 108,089 for February’s report. While this number for homeowners who had their trial modification canceled decreased to 59,420 in the February 2011 report, but there are some homeowners who still may have options outside of the home loan modification altogether.
There have been indications that homeowners have been unsuccessful at dealing with servicers when it comes to getting these alternative modifications, and in certain instances, servicers have not unwilling to offer extension plans or affordability options to homeowners who were seeking some form of mortgage debt relief. As a specific example concerning J.P. Morgan Chase, this financial institution has stated that when homeowners in an underwater home loan situation are able to meet their monthly mortgage payment, a principal reduction is unavailable, so there are some homeowners who are not able to qualify for certain programs that are being implemented by these particular banks.
Yet, Chase does offer assistance to homeowners through federal modifications and, in some states, homeowners may have foreclosure prevention options through the Hardest Hit Fund. Various state housing agencies have been able to offer assistance to homeowners, and when working with these financial institutions, it could bring about more options for individuals who are in a difficult financial position and, as a result, allow them to take advantage of affordability opportunities that may be necessary if a federal modification plan has not been successful.
Understandably, homeowners have still struggled when it comes to dealing with their servicers and may need to contact an approved housing counselor from the Making Home Affordable Program or the Hope Hotline, as a way to help them either work through the modification process or explore all options that may be available for that particular situation. No financial institution has helped every homeowner, as there are some issues still in place that have prevented individuals from receiving the aid they needed to avoid the loss of their home, but when financial troubles arise, exploring foreclosure prevention options early can be more helpful as there are, again, options beyond simple modifications from either the federal initiative or in-house alternatives directly from servicers.