Mixed feelings are often the result of the Making Home Affordable Program as many homeowners are either grateful for the assistance that they receive or are angry and accusing lenders of not doing all they can to make home loan modifications more obtainable. Lenders have made mention of the fact that some homeowners simply do not qualify or improperly submit paperwork, while upset homeowners feel that lenders are not adhering to the program guidelines and simply do not care.
One lender who has been criticized is Bank of America, who saw an increase in the amount of permanent home loan modifications made between May and June of 2010. The numbers for these permit modifications increased from 62,969 to 72,232. Also, the number of delinquent homeowners who potentially qualified for a modification in these months fell from 478,811 to 469,905. While there are some who see this as a hopeful sign, meaning that less Bank of America homeowners were delinquent as of June, others have a more unfavorable view.
While Bank of America has been seeing more permanent home loan modifications and have been offering alternative assistance programs like principal reductions, second lien modifications, and in-house assistance programs for many homeowners who do not qualify for the modification program, there are still homeowners who cite the fact that trial modifications have dropped by many lenders and mortgage services are not doing more to offer permanent modifications.
These angry homeowners feel that more needs to be done to prevent foreclosures on homes and there have even been governmental officials who echo these statements. Recently, a Congressional hearing was held to determine if more could be done in the efforts to prevent foreclosures, but many of the top lenders in the Making Home Affordable Program testified that multiple programs set in place to help homeowners are doing all they can.
It’s obvious that not every homeowner will qualify for modification, but the question that many still ask is, “Can more be done?” While unemployment has taken its toll on the ability of homeowners to pay their home loan, improper paperwork has been cited by lenders as one of the reasons modifications aren’t given to certain homeowners. There are some homeowners are not able to make home loan payments during the trial modification period, many still feel that more homeowners should have a permanent modification.
While there are obviously two very different sides to this topic, homeowners who are struggling are still being advised to contact a mortgage lender primarily if they are having troubles in their home loan. While there are some outside sources that can be helpful when seeking a modification, many scams have arisen and advisers often tell homeowners to avoid these less reputable services. However, the Making Home Affordable Program website and resources are still available for homeowners who are struggling to obtain a modification and keep their home.