Many homeowners with J.P. Morgan Chase may be in a position where they are looking for alternatives to federal Making Home Affordable programs and may wish to explore private modification options that are available from a variety of mortgage servicers but it has been seen over the past months that there are some banks using private modifications in greater number than federal modification plans, and there has been information that there are more proprietary home modifications that are being made than federal modification plans, despite the fact that both types of aid do still have their imperfections.
Yet, we saw that with J.P. Morgan Chase there was an increase in the number of private and portfolio modifications that had been made between June and July as the Treasury Department has reported information on the types of modifications categorized by investors, which can group homeowners into different areas of any bank’s modification program. For Chase, the number of modifications by the investor type classified as portfolio increased by a little over 300 while the private investor type category indicated that there was an increase of a little over 700 modifications made between June and July.
This information may be confusing for some homeowners, but essentially the message that advisers hope homeowners take away is that there are opportunities for modifications available outside of the federal Making Home Affordable Program, as some services like J.P. Morgan Chase do offer plans that go beyond modifications in some instances, and there are states that have J.P. Morgan Chase homeowners who are able to take advantage of state-specific foreclosure prevention programs as well.
However, homeowners do need to make sure they realize that a private modification or a federal modification program is not going to be available in all cases nor is a particular servicer, like J.P. Morgan Chase, required to use one particular type of modification strategy more than another. We have seen some variations from one servicer to another in cases where some may be offering more private modification plans while others may be using options like a short sale to address the needs of homeowners who have fallen behind on their mortgage payments.
When it comes to alternative modifications reported by the Treasury Department that have been made by J.P. Morgan Chase for homeowners who either had their trial modification canceled or has a trial modification denied, the number of alternative modifications made between May and June in these categories decreased for Chase, which means that simply because certain types of home loan modifications by various investor types are seeing increases does not mean that an alternative plan will always be worked out with a homeowner.
Because of the uncertainty that comes with these modification programs, homeowners with any servicer are still being urged to contact representatives from their bank or housing counseling assistance made available from programs like the HOPE Now initiative who may better guide homeowners through not only available programs but plans that may be available directly from their mortgage servicer to meet their needs.