J.P. Morgan Chase is one of the major banks that participates in the foreclosure alternatives program within HAMP and, according to the most recent data from the Treasury Department, was one of the banks that saw an increase in the number of short sale and deed in lieu of foreclosure programs that had been made, in total, for homeowners who may have been denied a home loan modification. The most recent reports tracked this information from the earlier part in the year, specifically February and March, but for some banks this led to a stagnant number or even a decrease in the overall total that was reported.
For J.P. Morgan Chase though, homeowners who either had their trial modification canceled or who were not accepted for a trial modification initially both saw an increase in this data from earlier in the year. As an example, homeowners who had a trial modification that was canceled saw an increase in these foreclosure alternative plans with J.P. Morgan Chase from over 5000 to 6045, from February to March. Also, homeowners who were not accepted for a trial modification saw these numbers increase from over 14,000 to 17,731, for the same time period.
There are though, some homeowners who may have been more reluctant to acquire assistance from one of these plans due to the fact that it can do a substantial amount of damage to their credit score, but of course there are homeowners who are left with few alternatives. In these cases, some reports have stated that banks are beginning to take a more active role in the short sale process by contacting homeowners to inform them that this particular route may be available for their situation after a modification has been denied.
Homeowners should understand that there are options beyond modifications that may be helpful for their particular mortgage difficulties and, as a result, these foreclosure prevention efforts may need to be explored before a short sale is considered. While J.P. Morgan Chase does participate in a wide number of these plans, it will depend on a homeowner’s state, financial position, and the severity of their delinquency as to what options may be available.
There are homeowners who have had trouble when it comes to dealing with their bank and these foreclosure prevention programs, but there are also resources that may help in this area as well. Homeowners have been prompted for months to contact the housing counseling hotline made available to homeowners seeking a home loan modification, as these reputable counseling agencies may be able to help homeowners better deal with their servicer and find an efficient solution to their home loan troubles.