Foreclosures are still a major problem in many areas across the nation and servicers like JP Morgan Chase have continued to see homeowners fall behind on their mortgage to such an extent that the loss of their home may be inevitable, despite the fact that some homeowners have pursued a home loan modification, only to fall short. Data released by the Treasury Department in early June did show that JP Morgan Chase had increases in the area of foreclosure starts and foreclosure completions for homeowners who were either denied a trial modification or had their trial modification canceled and homeowners are wondering whether modification programs in general are still in a position to help those with long-term financial hardships.
Yet, J.P. Morgan Chase reported that, for homeowners not accepted into a trial modification plan, February’s numbers stated there were over 47,000 total foreclosure starts that had been recorded for Chase, but the March data showed that over 51,000 foreclosure starts were currently being tracked within HAMP. Also, this category of homeowners had experienced an increase in the total number of foreclosure completions to 15,017 with J.P. Morgan Chase, and homeowners whose trial modification was canceled also saw an increase in the number of total foreclosure completions to 10,529.
Homeowners who follow the progress of the federal modification may have noted that, over the past months, there seemed to be continued increases in permanent modifications, but there are also increases in the number of foreclosures that are being seen and this has led many to wonder whether servicers are implementing these plans efficiently enough to help those who qualify. There have been issues of homeowners not being able to transition from a trial modification to a permanent plan more quickly, but homeowners do still argue that constant denials of a trial or permanent home loan modification plagued the program since some men and women are deemed to be in a position where they will not qualify for this federal initiative.
As has been reported over the past months, there are housing counseling services available to homeowners through the HOPE Hotline, but homeowners are not guaranteed a modification simply by consulting one of these counseling opportunities. Yet, homeowners who are having trouble with their servicer in the federal modification program may be able to inquire about proprietary home loan assistance or extension plans that may help address issues that are the cause of a homeowner’s mortgage payment problems.
There are various programs in certain states and within the modification program that can address unemployment, but there are issues like negative equity or even in the presence of a second loan on a home that may also have solutions if these particular problems are causing homeowners financial distress. It should be noted though, modification plans and servicers in general are not perfect and there have been mistakes made, but homeowners may be able to appeal a denial of their home loan modification if they feel they meet the criteria for foreclosure prevention assistance.