J.P. Morgan Chase was one of the servicers who saw an increase in the activity that has been ongoing with various servicers within the Home Affordable Foreclosure Alternatives initiative that was made available to homeowners who may have been unable to find foreclosure prevention plans that would fit their particular needs and, as a way to avoid a formal foreclosure, these short sale and deed in lieu of foreclosure plans were made available. Yet, homeowners may find that this particular route is not always available as there are some requirements that are necessary and some problems that have arisen for homeowners in the past, but there are also some advisers who suggest that homeowners attempt to avoid a short sale or deed in lieu of foreclosure program without exploring the foreclosure prevention options first.
While most homeowners with J.P. Morgan Chase or any other servicer have looked into modifications primarily, there have been those who when seeing that they are in a negative equity position have attempted to pursue a short sale as a way to escape their situation, but this may not always be in a homeowner’s best interest and there are some negative equity programs that could potentially help homeowners in this predicament. However, if these plans are explored and a homeowner has been unaided by various loss mitigation efforts, there is still HAFA that may help some homeowners transition from their current home to a new living arrangement.
In was in HAFA that Chase saw some success between May and June as the total number of agreements that they had started in May numbered at 6,120 while that number increased in the month of June to 7,222. These completed agreements for J.P. Morgan Chase numbered at 2,686 in May and increased to 3,596 in June, which shows that there are some homeowners seeing success with this particular servicer, but there have also been increases in the program in general.
However, homeowners do need to be aware that there are some instances where options like a short sale may do damage to a homeowner’s credit score that is comparable to a foreclosure, as some homeowners have seen their FICO score take a big hit even after participating in one of these foreclosure alternative plan. Yet, there are homeowners who are in a position where they have seen financial setbacks to an extent where they are not worried necessarily about this decrease in their score, but may be hoping to take advantage of relocation assistance funds that could come with participating in a Home Affordable Foreclosure Alternative plan.
Again though, homeowners may want to look at not only extension plans within the modification program that may help them with their financial troubles, but state plans or even in-house homeowner assistance programs directly from servicers like Chase that could help homeowners avoid the need for either a short sale or deed in lieu of foreclosure plan and it could be more advantageous for a homeowner who was able to stay in their home rather than have to relocate and run the risk of potentially hurting their credit.