The differences that many mortgage servicers are seeing in terms of the paths that a homeowner may follow after being denied a trial modification or permanent modification are obvious, but there are some homeowners who have been fortunate enough to become current on their mortgage when they may have fallen behind and sought out a modification. Yet, for J.P. Morgan Chase, homeowners who were delinquent on their mortgage did not see positive results in the area of homeowners who were current after having their trial modification canceled or being denied a trial modification initially according to Treasury reports that were released in July.
As an example, data tracked through the month of April that showed totals for the homeowners who did not proceed forward in the home modification program differed in a variety of ways from one service or to another, but for J.P. Morgan Chase homeowners who were current on their mortgage after the cancellation of their trial modification or the denial of their trial modification saw relatively little movement, and saw a decrease in some cases in this total between March and April of 2011.
However, J.P. Morgan Chase is not the only bank that has seen homeowners who were unable to find themselves on a stable financial ground after being denied assistance from the Making Home Affordable Program. There were some banks that did see decreases in their overall numbers as well, while others saw either little change or drastic leaps in the number of borrowers who were reportedly current after facing denials in the modification process.
Homeowners who are delinquent on their home loan do need to be aware of programs that may be offered in some areas to help those who have fallen behind on their mortgage payments but now may be in a position where they can potentially meet these obligations despite the fact that they are still in a position where they cannot pay the total sum they owe on the missed payments during their period of financial distress. These reinstatement programs, however, may only be available in limited areas and not every homeowner’s servicer necessarily participates. While J.P. Morgan Chase is one of the servicers who participate in the widely known California Keep Your Home initiative, and has also been reported as one of the servicers who uses this particular reinstatement plan within this state, homeowners may want to contact their servicer or state housing agency to inquire whether similar programs are available in their area and if their servicer participates.
These programs are not a guarantee as reinstatement plans do not necessarily cover the entirety of a homeowner’s delinquent payments, but homeowners who may be running the risk of foreclosure despite the fact that their financial situation has improved may benefit from these plans, so talking with officials like housing counselors, their state housing agency, or simply representatives from a servicer could potentially lead to solutions for a homeowner who has fallen behind on their mortgage payments in the past.