Home Loan Modification Trial Period Cancellations May Bring Opportunities For Alternative Assistance Plans

Reports from the Making Home Affordable Program have released data on trial period modifications that have been canceled up until May 2010. The June report from the Making Home Affordable program contains this data and many individuals believe that it points to a problem with trial modification cancellations, while lenders state that this data shows homeowners who do not receive a modification from the Obama Home Affordable Plan had been receiving alternative assistance plans.

The report released for the month of June, which has tallies of Home Affordable trial modification cancellations through the month of May 2010, state that up until that month 344,869 cancellations were made. This, for many homeowners is a high number and has caused outrage and accusations that lenders are not doing all they can to help homeowners obtain a permanent modification on their home loan. Economic and financial difficulties continue to plague homeowners who can no longer afford their home loan payment and are depending on a modification to keep a roof over their head.

Yet, lenders point to the fact that the homeowners from the eight largest servicers have often entered into alternative plans to help make their home more affordable. For instance, 154,873 homeowners have been granted an alternative modification if their trial was canceled, 20,146 were reported to be current on their home loan after a trial modification was canceled, 3,063 homeowners were given a payment plan that did not involve a formal home loan modification, while 8,245 were able to enter into a short sale or deed in lieu of foreclosure plan.

However, homeowners also point to the fact that 30,617 homeowners have begun the foreclosure process while 4,440 homeowners have been foreclosed upon. There are those critics who say that the Making Home Affordable Program has not done enough to help homeowners either avoid foreclosure or provide them with the means to obtain a more affordable home loan payment.

Mortgage servicers continue to mention that there are alternatives to a home loan modification and in-house programs are being offered to help those who do not qualify for a traditional Making Home Affordable modification. Also, lenders in the Home Affordable Modification Program have seen an increase in the number of permanent home loan modifications that have been made over the past months, which is something many view to be a positive for the program and housing market.

Homeowners who are struggling to meet their mortgage payments are often advised to contact their lender as soon as troubles arise so that they can begin the process of finding a mortgage assistance plan that will be in their best financial interest and helpful in their situation. While there are homeowners who do not believe lenders should be consulted, and choose to use outside assistance when seeking a home loan modification, homeowners are to be cautioned that there are scams that have been in the works and sources that are reputable, like the Making Home Affordable Program website, should be used instead.

http://financialstability.gov/latest/reportsanddocs.html