Homeowners with J.P. Morgan Chase who have been able to take a better job with such programs as a short sale or deed in lieu of foreclosure plan may have found that this particular servicer can offer this type of transition from a home when financial distress is in place as part of programs like the Home Affordable Foreclosure Alternatives initiative but there are also homeowners seeing short sale opportunities after they have failed to qualify for a federal home loan modification.
For homeowners in this particular position, there have been increases when it comes to short sale and deed in lieu of foreclosure plans for a homeowners who were unsuccessful in HAMP, and there are homeowners who have preferred to participate in these alternatives to foreclosure as, in some instances, it can help homeowners transition from a trying and difficult situation. Yet, it does need to be remembered that a short sale or deed in lieu of foreclosure plan could be detrimental to a homeowner’s credit score, despite the fact that some argue homeowners can alleviate themselves of a financially troubling situation sooner, may take a hit to their credit score but not to the extent that may have been seen if missed payments on their mortgage continued, as well as trouble in other areas of their financial life, and then facing foreclosure or bankruptcy.
However, for J.P. Morgan Chase, short sales and indeed in lieu of foreclosure plans between June and July increased for homeowners whose trial modification was canceled and for homeowners who were not accepted for a trial modification initially. Homeowners whose trial modification was canceled did see a program total improvement in terms of these programs that were offered by a total of 30 homeowners between June and July, but the number of homeowners who were not accepted for trial modification but were offered either a short sale or deed in lieu of foreclosure plan with J.P. Morgan Chase increased from 24,763 to 26,166 between June and July.
This information was released in October and has given us some of the more current information available on these particular plans, but homeowners do need to remember that they must explore how one of these alternatives will impact their financial life and mortgage situation, as there are many foreclosure prevention opportunities that can still help homeowners in need. State programs, proprietary plans directly from J.P. Morgan Chase, and federal mortgage assistance programs that go beyond a modification can help homeowners avoid the need for filing bankruptcy, facing foreclosure, or even turning to a short sale or deed in lieu of foreclosure plan, so exploring all of these options, looking at what they offer, and what will be best for a homeowner or all aspects of the mortgage assistance process that need to be considered before a homeowner resigns himself to one particular program.