While there are numerous homeowners who may face bankruptcy after being denied foreclosure prevention assistance, J.P. Morgan Chase did see different results in certain areas within the Making Home Affordable Program in terms of homeowners who may have had to file bankruptcy after being denied a modification. New data that comes here in July, tracking information through the month of April from the Treasury Department, has indicated that there were some ups and downs in the number of homeowners who filed bankruptcy after being denied either a trial or permanent modification, but there are some officials who feel that homeowners should not necessarily consider options like bankruptcy or foreclosure as there are various foreclosure prevention plans currently available to help homeowners avoid losing their property.
For J.P. Morgan Chase, the number of homeowners who file bankruptcy after not being accepted for a trial modification stood at 4,542 as of March of this year, but reports released a hearing July, which has only been able to track data through April of this year stated that that number increased to 4,838. Yet, J.P. Morgan Chase saw a slight decrease in the number of bankruptcies filed by homeowners whose trial modification was canceled, and this may be an indication that homeowners are finding ways to avoid burdensome debt and the loss of their home thanks to programs that are currently being used by various financial institutions.
As an example, servicers like J.P. Morgan Chase have not only been able to offer assistance to homeowners through private programs, but the Making Home Affordable Program has also attempted to further implement certain plans like unemployment forbearance options to help homeowners who may have lost their job but are in a position where they may find employment in the near future and be able to resume making home loan payments or qualify for a modification.
Understandably, unemployment has been one of the reasons that homeowners may opt to file bankruptcy as the homeowners who may simply face foreclosure but are able to stay afloat in other areas of their financial life have usually been able to transition from their home to an alternative living arrangement, in some cases, but for homeowners who may be out of work and have little or no income or savings, bankruptcy has been deemed by some as their only option. Yet, homeowners must remember that servicers like Chase are offering different types of modifications, extension plans within the federal Making Home Affordable initiative, and some states are helping homeowners meet their mortgage payment through various efforts from state housing agencies, so these options should not be overlooked by homeowners since they may help keep homeowners afloat until they can get back on their feet and ultimately avoid the loss of their home or filing bankruptcy.