Second lien modifications for J.P. Morgan Chase homeowners may be another step that homeowners can take beyond a primary home loan modification that will help them lower their mortgage payments when a simple modification plan on a homeowner’s first mortgage is not enough to help them avoid delinquency or foreclosure. This particular modification plan was set in place as one of the supplemental plans that go along with the federal Making Home Affordable modification programs, and has been seeing success in terms of the number of homeowners who were helped by a variety of the big banks currently participating in the federal modification initiative.
Chase saw an increase according to recent Treasury Department reports in this area of second lien modifications as well, so this could be a route that homeowners take when they are finding that their second mortgage is simply too much for them to handle despite having a reduction in their primary home loan mortgage payment obligation. Second lien modifications also offer some homeowners either a full or partial extinguishment of their second lien debt, and this has also been helpful to homeowners who are struggling with this particular issue.
However, homeowners are not always able to benefit from this plan and, as a result, may need to consult with a housing counselor or their mortgage servicer to see whether this particular route will be helpful for their situation. Yet, for J.P. Morgan Chase homeowners who have pursued a second lien modification, the number of second lien modifications that were started by Chase according to the May 2011 Treasury Department report stood at 4,549, but increased to 4,710 in the June report. Also, the number of active modifications that offered a partial extinguishment of a second lien stood at 4,494 in May, but increased to 4,645 in June.
Homeowners need to keep in mind that this second lien modification program is, again, not going to be helpful or available to every homeowner but has been successful in some cases where homeowners have had a second mortgage present and are still unable to affordably pay their mortgage obligations due to factors in their financial life which have arisen over the past months. There are also programs that may help homeowners directly from states and some federal Making Home Affordable Program initiatives may focus in on specifics that a homeowner is having to deal with it, like unemployment.
Understandably, homeowners dealing with unemployment, negative equity, or home loan delinquency may feel that they have limited options but there are housing counselors from the HOPE Hotline or resources like those from the FHA that may help homeowners explore all the opportunities available for their particular situation and in their area. Again, these foreclosure prevention efforts are not always successful but homeowners who are struggling at the present time may be able to begin researching these opportunities, consulting with their mortgage servicer or a reputable housing counselor in order to find if any of these particular plans will be helpful when it comes to meeting their financial needs.