Alternatives to foreclosure from J.P. Morgan Chase, specifically short sales and deed in lieu of foreclosure plans, saw improvements within the federal Home Affordable Foreclosure Alternatives initiative between July and August, as homeowners with Chase saw increases in not only these agreements that have been started but the number that had been completed as well. Obviously, there are those who debate the usefulness of these programs, in terms of helping a homeowner in their financial life, but many still seek out these agreements, particularly short sales, when instances like underwater problems have arisen for a homeowner on their property.
As housing values continue to decrease in some areas, with predictions coming that home values may fall further in the coming months, Chase has been one of the major mortgage servicers who have participated in these initiatives, and Treasury Department data specifically related to HAFA has shown that the number of these alternatives agreements that have been started increased from 10,191 in July to 11,683 in August. Furthermore the completed agreements from J.P. Morgan Chase increased from 4,621 in July to 6,454 in August as well, which is a trend that some servicers have seen in terms of making these options available to homeowners.
There are those who feel that a short sale or deed in lieu of foreclosure plan can be helpful because they can bring financial assistance to homeowners, will be helpful when it comes to relocating homeowners from a difficult financial position and a negative equity situation, as relocation funding has been available to many distressed homeowners, but arguments that still remain that homeowners might not necessarily save their credit score as a result of one of these plans. However, some homeowners have seen their credit take a hit as a result of financial problems that have led to seeking out foreclosure prevention or alternative options, so this may not be a major issue for those participating in these short sale or deed in lieu of foreclosure programs, but it is something that homeowners may want to consider.
However, homeowners not only with J.P. Morgan Chase but other financial institutions are seeing these opportunities made more available specifically as banks work to avoid more foreclosed properties on their home during a time where there are simply not enough buyers to start absorbing the number of homes that are sitting empty in the housing market, and some of these foreclosed homes have been attributed to property value decreases in some areas, which means homeowners who are facing the loss of their home but are able to sell their property could be beneficial in some ways.
While these short sale agreements have sometimes been difficult to come by and there have been complaints that this process is far too long for some buyers, Chase homeowners, among many others, are still in a position where if one of these foreclosure alternatives looks to be advantageous for specific homeowners, options are still in place that may help those struggling with their mortgage payment or negative equity to transition from their home in a way that may help them avoid further setbacks as result of their mortgage.