J.P. Morgan Chase was one of the mortgage servicers who saw the number of foreclosure starts and completions increase for homeowners who were not accepted for a trial or permanent home loan modification as there are many homeowners who may fail to acquire this particular type of foreclosure prevention assistance who are left wondering if their home loan modification does not go through, what options outside of modifications do they have? This is obviously a common question among homeowners as it’s certain that not everyone who applies for one of these mortgage assistance plans will be successful.
However, despite this report from the Treasury Department, which indicates that servicers like Chase and others are still seeing foreclosures after the home loan modification program has failed to help, there are options that homeowners might be able to pursue if they are denied a federal modification plan. While some areas of these increases for J.P. Morgan Chase in terms of the program total number of foreclosure starts and completions were not necessarily substantial, homeowners who were not accepted for a trial modification saw an increase from 56,416 total foreclosure starts recorded as of April to 62,922 total foreclosure starts as of May.
There are some servicers who do have delays in terms of the number of foreclosures they are currently able to process and some of these foreclosures may be pushed into later 2011 or early 2012, but homeowners need to understand that foreclosure is not inevitable simply because their servicer has denied them a home loan modification. While it will depend on the homeowner’s situation and their servicer, there are some alternative options like those within the Hardest Hit Fund and there are in-house home modification plans that may be beneficial for a homeowner as well.
Chase homeowners should also remember that extension plans within the federal Home Affordable Modification Program may also be available as all the servicers who are participating in the federal modification initiative may also be able to offer assistance through programs like the Unemployment Program or modifications on a homeowner’s second mortgage when a primary mortgage modification simply does not reduce their payments enough to help. It goes without saying that these programs are not perfect, but Chase has been one of the top servicers in the modification program who has continued to see increases in the number of permanent modifications they have made, so while homeowners are not guaranteed foreclosure prevention assistance, if they begin by addressing their financial issues early, there may be more time to better explore alternatives if a modification from HAMP is not best for the situation.