J.P. Morgan Chase Foreclosure Prevention Programs–After HAMP Homeowners See Increase In Foreclosures

J.P. Morgan Chase has been one of the top servicers implementing federal foreclosure prevention programs since 2009, but we have seen that some homeowners are still facing foreclosure as a result of being unable to take advantage of or benefit from initiatives like HAMP. While there have been some mixed results on a month-to-month basis, recently J.P. Morgan Chase and saw an increase in the number of foreclosure starts and completions for homeowners who were unsuccessful at receiving a home loan modification from the federal Making Home Affordable Program, but homeowners need to understand that simply because a modification is not offered does not mean that foreclosure is inevitable.

However, between the months of May and June, Chase saw an increase in the number of foreclosure starts for homeowners who had their trial modification canceled of around 162 while the number of total foreclosure completions for homeowners in this category increased by almost 400. Also, for homeowners who were not accepted for a trial modification with J.P. Morgan Chase, the number of foreclosure starts between May and June increased from 62,922 to 68,627, and foreclosure completions rose from 17,632 to 19,948.

This information made available by the Treasury Department has shown that homeowners often fall into a wide range of categories after failing to receive a permanent modification, as some may be offered an alternative modification, some participate in options like short sales, but there have been homeowners who continue to face foreclosure as a result of not finding a good fit for their foreclosure prevention needs. Yet, Chase was one of the servicers who did see increases in the area of permanent modifications according to reports tracking data for the month of July, so homeowners may still be in a position to find loss prevention programs to meet their needs.

Yet, homeowners must also realize that servicers are still having some trouble in the area of modifications as the Treasury Department still sees both moderate and substantial improvements that need to be made by some of the banks working within HAMP to address homeowner needs. While foreclosures are unavoidable for some, homeowners need to remember that there are resources to help them better qualify for and sustain payments in a trial modification plan, as some homeowners may simply be denied a permanent modification because they have not got their finances in order and missed trial payments.

While housing counselors have been able to help some, and there are homeowners getting free housing counseling assistance in certain cases, taking the initiative to explore options like HAMP or even state-specific programs early have been advantageous for homeowners, no matter their servicer, simple because they are better informed on what’s available for their situation and are able to better prepare themselves for the application process when it comes to pursuing current plans for mortgage assistance that are presently available.