JP Morgan Chase Delinquent Trial Modification Program–Federal HAMP Trials See Slight Decrease But Is Help Still Available?

J.P. Morgan Chase homeowners who are delinquent on their mortgage payment did see improvements in some areas of federal home loan modification program in the month of June but homeowners are still witnessing declines in the area of active trial modifications with many servicers in the program and this has led some to question whether these options are still available or if they are still being widely used by servicers. There have been governmental officials who are pressuring these banks to do more in terms of helping homeowners find affordability on their mortgage payment so options like modification plans are still in place by many of the major banks participating in the Making Home Affordable Program.

While this may not be a new piece of information for some homeowners, there are those who are recently seeing delinquency become a problem and, as a result, may not be informed on what a federal home loan modification may entail or if they do still have this route as a way to help them with their financial difficulties. While the number of home loan modifications between May and June did decrease for J.P. Morgan Chase, other areas of improvement have been seen and may give homeowners hope who are looking for a modification agreement with this particular servicer or another.

As an example, J.P. Morgan Chase had a total number of 23,052 active trial modifications in the month of May but that number decreased to 20,708 active trial modifications that were current as of the month of June. Also, the number of active trial modifications that were lasting six months or longer increased between May and June, according to the Treasury Department reports, however with the number of permanent modifications increasing by almost 6000 between these two months, homeowners are still seeing some results from Chase.

Yet, homeowners do need to remember that there are some problems which have arisen when working with servicers and, as it has been stated repeatedly, consulting a reputable housing counselor like those from the HOPE Hotline may be beneficial when it comes to homeowners who are looking for aid when starting the modification process or who may simply be in a position where they do not know what options they have for their specific situation. Homeowners have had problems when it comes to moving from trial modifications to a permanent modification status and there have been some miscommunication between homeowners and these banks, which is hopefully going to be less of an issue as servicers continue to work in areas where they need improvement.

Despite the fact that the Treasury Department released a rating system that showed where areas of improvement needed to take place for all of these banks, there are still factors like unemployment, communication breakdowns between homeowners and their servicer, and documentation errors that may arise on the part of either a homeowner or their bank. Needless to say, the modification program has not been perfect but does still offer homeowners who are delinquent the opportunity to receive a trial modification so that they can explore whether this route will be best for their situation, but again, there are also alternative plans that homeowners may be able to use so looking over these options with representatives from a homeowner’s mortgage servicer or a housing counselor should be a priority for anyone who may be facing financial trouble and, as always, homeowners should address their financial concerns as early as possible so that they can avoid problems related to their financial life and their ability to make their mortgage payment.