Home Loan Mortgage Modification Program Sees Overall Increase In Permanent Home Loan Modifications For June 2010

Homeowners in the Making Home Affordable mortgage modification program may have seen more results over the past month as the number of permanent home loan modifications that have been made have increased. Some of the nation’s top mortgage services are participating in the modification program and, despite criticism, there has been an increase in mortgage assistance offered to homeowners since the beginning of the year.

Overall, the Making Home Affordable Program saw an increase in the amount of permanent modifications made from May to June in 2010. The Making Home Affordable report for the month of May stated that 340,459 permanent home loan modifications had been made up until that point. However, June saw an increase to 389,198 permanent home loan modifications total.

While trial modifications did drop from 467,672 in May to 364,077 in June, there are those who say that permanent modifications, which many homeowners are seeking, are being made at an increasing rate. Yet those who criticize the modification program and lenders say that getting through the trial process is what is difficult for many homeowners and it is the trial modification phase of this program that needs to be addressed.

Homeowner complaints have ranged from the fact that many are either denied a trial home loan modification or are kept in a modification trial for longer than the three-month requirement, and are sometimes denied at its conclusion. Lenders have stated that many homeowners simply cannot afford to make their payments in a trial modification period, which obviously disqualifies them from a permit modification or homeowners file improper paperwork which denies their permanent modification.

Permanent modifications from the month of January 2010 stood at only 116,297, according to the Making Home Affordable Report, but have seen a great jump over the past months. Yet, many believe that the original goal that was set by the Making Home Affordable Program is far from being reached and more needs to be accomplished. Yet, lenders often state that the program numbers do not reflect in-house mortgage assistance plans that are being made by lenders themselves to homeowners who do not qualify for an Obama modification.

The Making Home Affordable Program draws many mixed feeling from homeowners, officials, and banking representatives alike, but homeowners who are troubled and still in need of mortgage assistance are often advised to talk with their mortgage lender about assistance options that are available.  However, some homeowners have sought outside assistance when dealing with lenders and the modification process, but if a homeowner chooses this route there should be caution exercised since many companies are simply looking to take advantage of homeowners in need.  Yet, sources like the Making Home Affordable Program website are also still available to troubled homeowners.

Source