The Obama Home Loan Modification Foreclosure Prevention Program–Is There Room For Improvement?

While housing has been a major problem for many individuals over the past months, there have been the question as to whether the home loan modification program has been seeing the results that were first outlined at the inception of the program. There has been concern that homes that are eligible for a permanent modification have not been able to obtain the mortgage assistance they need and it’s for this reason that the House Oversight Committee held a hearing to see what changes need to be made with both lenders and the modification program.

The House Oversight Committee Chairman Edolphus Townes, among other representatives, have had concerns over the economic backlash that has come from numerous foreclosures and many men and women being thrown out on their home. However, there has been criticism of the Making Home Affordable Program and lenders echoing the sentiment that banks are not doing all they can to help homeowners avoid foreclosure.

Representatives from some of the largest banks working in the Making Home Affordable Program were present at this House Oversight Committee hearing and there was mention of both troubles that lenders are having and alternatives for homeowners who are working to save their home from foreclosure. Many lenders said that there were problems with homeowners paperwork, there was the fact that many homeowners simply do not qualify for a modification, and that was the trouble of homeowners missing payments during the home loan modification trial period.

However, lenders have not been perfect and there have been many more stories that have come from the home loan modification program, but there are mortgage assistance plans and foreclosure prevention options that are being made available to not only make homes more affordable but help homeowners who can no longer afford their home loan payment avoid taking the hit to their credit score that comes with foreclosure.

Homeowners are still angry but lenders have been making strides to add more staff to assist homeowners seeking mortgage assistance and some lenders have even stated they will assign one employee to help a homeowner through the entire loan modification process so as to avoid confusion.

Yet, the sentiments of House Oversight Committee Chairman Edolphus Townes are echoed by many people who believe that stabilizing the housing market and providing assistance to homeowners will be the only way to help the economy regain its full strength and put our nation on a firmer economic foundation.