The home loan modification program has been offering a variety of services for homeowners who are struggling to meet their monthly mortgage payment. Traditional home loan modifications from the Making Home Affordable Program have been on the rise over the past months and many homeowners have found themselves in a situation where they have a permanent home loan modification, which is making their monthly mortgage payments more affordable.
However, problems have arisen that have made many homeowners angry and brought criticism to the modification program for its inability to meet the original goal of homeowners who were assisted. Troubles like second liens have been combated with the implementation of the Second Lien Modification Program, which was set in place to modify a second mortgage on home loans so that mortgage payments could be made more affordable.
Also, aside from various foreclosure prevention efforts and foreclosure alternative programs, a new unemployment program is set to help homeowners who lost their job. The Home Affordable Unemployment Program is set to begin in August and allow homeowners who have lost their job a period of forbearance on their home loan payments or a decrease in their monthly mortgage payment to no more than 31% of their monthly income.
Many unemployed homeowners have been struggling and have faced foreclosure because they do not have an income to meet their basic necessities and payments, and those who are able to qualify for unemployment benefits, again, simply do not have the money to pay their home loan. It’s hoped that homeowners who are having to get by on the meager earnings from unemployment benefits will be able to take advantage of this unemployed homeowner assistance plan and avoid foreclosure.
Homeowners can consult the Making Home Affordable Program website or talk with their lender about various mortgage assistance plans that may be offered for their particular mortgage situation. While not all homeowners will qualify for mortgage assistance, there are plans to help homeowners who are struggling from both the Obama modification program and in-house plans from various lenders.