Homeowners are still facing problems related to unemployment in May, as the current unemployment rate stands at anywhere between 8.7% to over 9%, depending on the sources consulted, but for homeowners with servicers like J.P. Morgan Chase, these numbers are simply too high and reflect a very real problem that has led to distress when it comes to the ability of these men and women to make their home loan payment. However, homeowners with Chase are in a group of individuals who have a servicer that is able to offer home loan modification plans in the hopes of reducing a homeowner’s burden and allowing them to avoid foreclosure, but for many of these individuals, it all must start with a trial modification.
Reports released in early May 2011 have tracked data through the month of March in terms of what servicers have seen in their efforts within the federal home loan modification program. While there have been mixed results and many homeowners are still unhappy with what they’re seeing, Chase did see an increase in the number of trial modifications they have made over the past months, particularly between February and March of 2011. According to the most recent report, J.P. Morgan Chase has a total number of active trial modifications standing at 24,688.
While there are issues that many homeowners still face when it comes to either getting a trial modification or moving from a trial modification to a permanent home loan modification option, reports have also indicated that the Treasury Department is requiring servicers to establish a single point of contact later this year for homeowners who are seeking a modification, in the hopes of reducing problems that homeowners may have when it comes to working their way through the modification application process.
As it has been stated before, homeowners can still consult help in the form of housing counselors that are recommended by either the Department of Housing and Urban Development or the Making Home Affordable Program, but many homeowners feel that the process of getting more affordability on their home loan should not be as difficult as it is and, if homeowners are able to work with a single representative from their servicer, these issues could be nonexistent in the future.
Homeowners have usually seen problems in one of two areas, in which they either have had their paperwork lost and are seemingly dealing with an unorganized financial institution or due to factors like unemployment, homeowners are simply unable to meet the mortgage payment reduction plan that is offered through these modifications. While unemployment is something that many homeowners cannot overcome with a simple modification, but there are some unemployment assistance plans available from the federal government and various states that may be of help also. However, as reports show more permanent modifications are being made and servicers are seeing increases in trial modifications, this could potentially point to more success in the coming months in terms of foreclosure prevention.