J.P. Morgan Chase homeowners who are facing foreclosure and who may be in a position where they are in an underwater home loan have found that short sale or deed in lieu of foreclosure alternative programs may be helpful for their situation as these plans have been able to offer relocation assistance to some and generally help certain distressed homeowners move on from a troubling mortgage situation. However, homeowners with Chase, among other financial institutions, need to remember that there are options that may help them keep their property, but in some cases there have been homeowners who are actively pursuing these opportunities.
Yet, in terms of homeowners who may have opted for this foreclosure alternative routes after being denied assistance from HAMP, two categories tracked by the Treasury Department have shown improvement when it comes to these short sale and deed in lieu of foreclosure plans offered by J.P. Morgan Chase. For homeowners who had not been accepted for a trial modification, the number of short sale and deed in lieu of foreclosure programs that had been offered to homeowners, in total as of May 2011, stood at 22,145 for J.P. Morgan Chase, but this program total increased in the month of June to 24,763. Also, for homeowners who had their trial modification canceled with J.P. Morgan Chase, the program totals for short sales and deed in lieu of foreclosure programs increased from 6,591 to 7,006 between May and June as well.
Obviously, some homeowners hope to take advantage of these plans since there have been some banks offering relocation aid and allowing homeowners to be free and clear of their mortgage debt situation, particularly when factors like negative equity are place. It’s understandable that some homeowners may be in a position where modifications or other programs are either unhelpful or unavailable due to the severity of their underwater home loan problems and as a result these homeowners have attempted to work with their servicer to find a buyer that will purchase the property so that the bank will be able to fill this home and a homeowner can escape the frustrating situation where they owe more on their mortgage than their home is actually worth.
While there are some banks that are offering principle reduction options and some financial institutions are working within the Home Affordable Refinance Program, which may allow for more affordability, there are issues which have arisen when it comes to dealing with homeowners who can pay their underwater mortgage payment but are still asking for a principal reduction, and cases where investors may be unwilling to allow a principal reduction in specific instances where negative equity is in place.
Yet, for homeowners who feel that a short sale or deed in lieu of foreclosure plan may be right for their situation, it might be the case that they will have to pursue a modification first or at least see if they qualify for any foreclosure prevention options, but for those who are okay with this particular foreclosure alternatives route, it needs to be remembered that short sales or deed in lieu of foreclosure plans will not allow a homeowner to get away unscathed, so for those who are worried about their credit score it may be necessary to speak with the servicer or a housing counselor about the pros and cons of these foreclosure alternatives and see how they will impact a homeowner’s personal financial life.