Homeowners who may qualify for a Making Home Affordable home loan modification with J.P. Morgan Chase saw, according to the most recent HAMP reports in July, that in the earlier part of 2011 there were increases in number of delinquent homeowners saw with Chase for homeowners who were said to be more than 60 days delinquent on their home loan, which puts them in a category where a home loan modification could potentially be helpful. Obviously, many homeowners have heard that there are still delays in foreclosures being seen that may last through the end of 2011, but currently there are still homeowners who are falling behind on their mortgage payment and, as a result, could add to the list of homes that may face foreclosure in the near future.
While J.P. Morgan Chase was not the only financial institution in the federal Making Home Affordable initiative to see an increase in the number of delinquent borrowers, there have been ups and downs reported in the past few Treasury Department reports we have seen, as there are some banks that saw decreases in the number of delinquent borrowers, or increases in homeowner delinquency, while others have seen a mixture of the two.
Yet, according to Treasury data that tracked information through April of this year, J.P. Morgan Chase saw an increase in the number of delinquent homeowners who are estimated to be eligible for a federal modification from over 160,000 in March to 162,719 in April. What this means for homeowners is that there are still issues and the economy that could lead to a homeowner finding themselves in a difficult position financially and unable to make their home loan payment, so being aware of the potential need for a home loan modification is something that could benefit homeowners down the road if job loss or illness leads to these financial problems.
Chase has been one of the servicers who does continue to see increases in the number of permanent home loan modifications that are currently active, and in some cases servicers in this position are seeing more increases in the number of permanent modifications than there are homeowners falling into delinquency, which could point to a good sign within the federal home loan modification initiative overall. Yet, in terms of the total amount of homeowner delinquencies reported by the Treasury Department, from March to April of this year, there was a decrease in delinquent borrowers, which again, is a hopeful sign for homeowners in general.
It’s common sense that there are still problems within the modification program that need to be sorted out and some homeowners do still struggle when working with their lender, but as delinquencies are beginning to slow in some areas of the housing market, and continued efforts in the area of loss mitigation are being furthered by major financial institutions, it’s hoped that even with what many fail to be a stall in economic recovery, homeowners are still in a position to take advantage of assistance programs that may help them avoid foreclosure during these tough times.