Many homeowners with underwater mortgages have been searching options looking for relief outside of the foreclosure process. The Home Affordable Modification Plan is a program that was designed to help homeowners through mortgage loan modifications that could lower monthly mortgage payments.
Many homeowners have applied, but a large percentage have not been able to successfully secure these modifications; leaving them facing foreclosure yet again. However, mortgage holders from one large bank have seen increased efforts on behalf of the bank to resolve mortgage debt issues after they were denied help under the HAMP.
A Big Bank’s Business
J.P. Morgan Chase mortgage holders have been pleasantly surprised by the efforts of bank executives. Many who were denied HAMP assistance have been able to successfully secure a foreclosure alternatives plan with the bank’s help. Homeowners that were previously denied modification offers have been able to obtain deed in lieu or short sale options.
Many of the beneficiaries of Chases’ efforts have been those who are experiencing significant financial problems and were not qualified to participate in the HAMP. Chase understands that a deed in lieu or short sale may not be the top choice in foreclosure alternatives. However, many are of the consensus that any credit damage that results from the process is still better than having enter a foreclosure.