Many homeowners that are in need of mortgage assistance are often looking at what mortgage modification options are available for their home loan. Troubled homeowners have been seeking out help from the home loan modification program, from the Obama administration, which has many big lenders providing assistance for struggling homeowners.
There are a variety of mortgage assistance options available for homeowners but it should be known that no mortgage assistance plan is going to necessarily be an easy route for a homeowner who is struggling in their mortgage. There have been many homeowners who have been very frustrated and angered by their participation in one plan or another in the home loan modification program.
There are home loan modifications, unemployment forbearance programs, refinancing options, and principal forgiveness plans that are available to assist homeowners who may be struggling from a variety of factors. While not all lenders are using options like the principal reduction plan, homeowners who may be suffering from an underwater mortgage still have options that will allow them to better afford their home.
Again, lenders have not been perfect in the modification program and homeowners have made mistakes as well but homeowners are still being advised to contact their lender and ask about assistance that may be available from either the Making Home Affordable Program or from in-house assistance plans from specific lenders.
Plans like the unemployment forbearance option have not fully taken effect, but there are ways in which homeowners who are unemployed may be able to benefit and find assistance from lenders. Some banks, like Citigroup, provide alternate plans to help homeowners prepare for foreclosure. If a homeowner knows that they’re going to lose their home there are programs, like the ones from Citigroup, that will allow a homeowner to stay in their home for six months as long as they turn over the deed to the property after the expiration of that time.
Homeowners who may be struggling with an underwater mortgage might be able to get a principal reduction from certain lenders, but not from others, if a principal reduction is unavailable there may be alternate options. The majority of lenders agree that if a homeowner is struggling to make their mortgage payment as a result of their home losing value a mortgage principal reduction may be warranted.
Lenders are still using home loan modifications that can help homeowners get a more affordable home loan payment and the Treasury Department is set to conduct reviews of lenders in the Making Home Affordable Program to make sure they are doing all they can to provide the help that homeowners need.
The only sure way to find out what options are going to be available for a specific homeowner is for them to contact their lender, explain the situation, and seek out which assistance option is going to be the best for them.