Home Loan Modification Program Troubles–Will Modification Extension Programs Help More Homeowners?

Many homeowners have sought out a home loan modification through the Making Home Affordable home loan modification program. Many of the nation’s top lenders are participating in these mortgage assistance efforts, but there have been troubles and many complaints on the part of homeowners who say that lenders are not doing enough to make home loan payments more affordable and help homeowners avoid foreclosure.

For instance, a report released by the Making Home Affordable Program shows that as of May 2010, 121,696 homeowners were not approved for a trial modification and the home loan modification program. Also, out of the eight largest lenders, 19,694 homeowners are facing bankruptcy and 62,624 have begun the foreclosure process.

However, lenders have cited that despite homeowners being denied in some cases, there are 157,663 homeowners who have been given alternative modifications. There have been extensions to the Making Home Affordable Program, like the Second Lien Modification Program, but homeowners are still unhappy with these numbers and feel that more needs to be done.

Permanent home loan modifications have been on the rise over the past few months, but there are those who feel that there are far too many homeowners who are losing their home, being denied a home loan modification, or are not being assisted in a way that is affordable for them to keep their home, seeing as how there are many homeowners who become delinquent even after a modification is granted.

Yet programs like the Second Lien Modification Program are hoped to combat these problems by offering assistance to homeowners who have a second mortgage and, as a result, may still be unable to meet their home loan payment after a modification is granted. Also, the Home Affordable Unemployment Program is set to begin helping unemployed homeowners by lowering their monthly mortgage payments or offering a forbearance until these homeowners can get back on their feet.

While many homeowners are still having trouble with their home loans, there are options available to help.  Homeowners are still being asked to talk with their lender if they are having problems when it comes to paying their mortgage or consult the Making Home Affordable website for more resources on home loan modification programs and extensions.

Not every homeowner has been able to get a modification, but there are in-house programs that are being made available to help those who are denied a modification from the Obama Administration’s program, so homeowners have various avenues they can explore to make their home more affordable.