The latest information released here in September on second lien modifications for J.P. Morgan Chase homeowners has shown improvements but there have been some areas of this particular program that have remained unchanged. Obviously, a second mortgage on a home can be particularly troubling for homeowners who are facing financial distress, but it’s for this reason that various extension plans were offered as either an alternative or supplement to the federal Making Home Affordable Program, as there are certain issues that a traditional modification plan has simply been unable to address.
Yet, Chase has seen an increase in the number of modifications on these second mortgages that they have started and the number of active plans still in place also increased slightly, but when it comes to offers of a full extinguishment on second mortgages, Chase has remained at zero according to data between June and July. While the second lien modifications that started increased by 41 and the number of active modified terms on second liens that offered a partial extinguishment increased by 26, there are still homeowners who are looking to take advantage of potential opportunities from this program that may forgive the entirety of their second lien.
However, homeowners do still struggle with the possibility of foreclosure, despite the fact that there have been some delays in the housing industry that may have given more time to distressed homeowners when it comes to finding a solution to their mortgage payment troubles. Yet, this issue of a second mortgage has not necessarily been one of the more common problems that homeowners have faced with various servicers, as difficulties related to unemployment and underwater home loans are usually some of the main troubles that homeowners need addressed so that they can avoid the loss of their property.
Luckily, homeowners may have opportunities to address problems like a second lien on their home through both federal and, in some areas, state programs, but it needs to be remembered that when it comes to second lien modifications or forgiveness, it might be at the discretion a homeowner’s mortgage servicer as to how much help will be offered. In some cases, servicers like Chase are willing to offer a homeowner a more affordable payment plan on their home loan but when it comes to forgiving debt like a second mortgage or even reducing a homeowner’s principal, there have been banks who are unwilling to offer these types of debt relief opportunities, particularly when a homeowner’s situation can be improved through simple modification efforts that can make their payment more affordable.
Homeowners with a second mortgage will have to qualify for a Making Home Affordable modification program on their primary mortgage in most cases, but in instances where these second liens are still causing problems they may negate any benefits offered by a reduced payment on a primary home loan. Individuals in this position are being urged to contact representatives from their servicer or speak with a housing counselor so that they can get more information on opportunities available and begin the process of trying to get a more affordable payment or even extinguishment on their second mortgage.