Underwater homeowners with JP Morgan Chase are asking that more be done to help those in this situation by using plans through the Obama home loan modification program. Homeowners with underwater mortgages have been asking for principal reductions, but some lenders have been hesitant to provide this type of mortgage aid.
JP Morgan Chase is one of the homeowners that believe a principal reduction plan, like the one proposed by the Obama Administration, is not going to be beneficial or even fair to all homeowners. Chase has stated that granting principal reductions is something that should only be used if a homeowner stands to have trouble making their payment as a result of their home’s value dropping.
Homeowners that are struggling to make their mortgage payments still have options through the Making Home Affordable Program, but principal reductions are something that lenders feel goes against a mortgage contract and a buyer’s commitment to pay a set amount for a home.
While there are still underwater mortgage troubles, lenders are not leaving these homeowners out in the rain, but rather they are offering alternate programs. Also, programs like the Home Affordable Refinance Program, set in place to help underwater homeowners refinance their home, may provide assistance.
Homeowners are being advised to talk with their lender about specific options available to underwater homeowners struggling with their mortgage.