Here in early November the Treasury Department released data that has followed the federal home loan modification program through the month of September and, for J.P. Morgan Chase homeowners who have been seeking a modification from the Making Home Affordable Program, there was an increase in the number of foreclosure starts and completions in some areas of Chase’s specific plan. While this does not mean that homeowners do not have foreclosure prevention options available, but it does paint a picture that for Chase, and other home loan servicers, the loss of a home through foreclosure and the need for foreclosure prevention are still issues that many face at the current time.
Yet, the categories that homeowners fall into within the making home affordable program will obviously lead to different results in terms of foreclosures as homeowners who were not accepted for a trial modification within the Making Home Affordable Program saw an increase in foreclosure starts from 70,452 to 72,140, while foreclosure completions rose from 21,303 to 23,361. This data tracks information through the months of July and August, but there were also some changes between July and August for homeowners whose from modification was canceled with J.P. Morgan Chase and foreclosure may have been the next step.
As an example, the number of foreclosure starts with J.P. Morgan Chase for this category of homeowners whose trial modification was canceled decreased from 23,879 to 23,236. Yet, foreclosure completions increased from 12,179 to 12,620, again between July and August for homeowners whose trial modification was canceled. Homeowners are urged to keep in mind that this data reflects not only current foreclosures and those that have been made in the past, but there are also some foreclosures that may have been removed from a servicer’s portfolio, these are simply numbers currently being released as part of the federal trial modification initiative.
While J.P. Morgan Chase does offer alternatives to federal modifications that may be helpful when it comes to keeping homeowners in their home, offering affordable monthly payments, or simply helping those who may be in a specific situation, like homeowners who are unemployed, there are no guarantees and some homeowners may indeed simply be in a position where they have to face the loss of their home, but there are officials like housing counselors available to help homeowners explore all options in a specific state or with their servicer that could help them keep their home and find more affordability.
Consulting housing counseling agencies or even representatives like those from the Department of Housing and Urban Development have been beneficial for some, but homeowners may have to look to their state’s housing agency for aid when it comes to keeping their home, as again not all homeowners have seen success in the Making Home Affordable program to an extent that has allowed him to avoid foreclosure in every case.