Home Loan Modification Programs To Assist Homeowners Vary But Do They Work?

The home loan modification program from the Obama administration has provided assistance for many homeowners who have been struggling to make their mortgage payment due to factors like unemployment, underemployment, or having an underwater mortgage. However, many people are questioning the success of the Making Home Affordable Program, as the original goal of homeowners that would be helped has not been met.

Assistance programs by principal reductions, home loan modifications, unemployment forbearance programs and even refinancing options have been used by many lenders, but problems still remain when it comes to helping homeowners get the assistance that they need.

Much of the blame for this falls on lenders and the Treasury Department has said that they will start reviewing lenders to make sure that they are doing all they can to assist homeowners who are struggling with their mortgage payment. Lenders, on the other hand, say that many homeowners either don’t meet the qualifications of the Making Home Affordable Program or don’t turn in their paperwork, so they miss out on assistance.

However, lenders also say they are not given credit for in-house programs they are using to provide assistance for homeowners through similar programs that are being proposed by the Obama administration. For instance, Citigroup CEO, Vikram Pandit, stated that homeowners who may not qualify for a home loan modification through the Obama administration’s program still can get help from Citigroup specific assistance programs.

While the home loan modification program is far from perfect and lenders are said to be failing in some areas when it comes to providing assistance, there are homeowners who have been and are still being helped through the Making Home Affordable Program and through lenders’ programs as well.

Mortgage assistance may not be an easy road but homeowners who are struggling are still being advised to contact their mortgage lenders and ask about various programs that may help them avoid foreclosure or make the mortgage payment more affordable.