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

Despite criticisms of the Making Home Affordable Program there have been increases in the number of permanent home loan modifications that have been made over the past month. The June 2010 report from the Making Home Affordable Program shows an increase in permanent home loan modifications, but a decrease in the number of trial modifications that have been made up until that point.

In May of 2010, the Making Home Affordable Program reported that 340,459 permanent home loan modifications have been made through that month, which was up from the January 2010 total of 116,297. However, from May to June, the number of permanent home loan modifications that had been made rose to 389,198 permanent modifications.

Yet, many homeowners point to the fact that a greater number of trial modifications are being canceled, which has been troublesome for homeowners who have been struggling to obtain the mortgage modification assistance they need. Many homeowners have accused lenders of keeping them in the trial phase of the modification program for too long or denying them a permit modification for seemingly no reason. In May 2010, the Making Home Affordable data reported 457,672 trial modifications up until that point, but that number decreased to 364,077 for the month of June 2010.

While there have been cancellations in the trial modification phase of the Making Home Affordable Program for many homeowners, there are alternative assistance options available for homeowners from lenders themselves or other foreclosure prevention programs. Also, troubles like second mortgages, which have caused homeowners to be unable to benefit from a modification due to the fact that their second lien has not been modified, have been combated by efforts like the Second Lien Modification Program.

There are homeowners who are still falling into more trouble and can benefit from a home loan modification or an extension program of the Making Home Affordable Program. However, it’s advised that homeowners who are facing mortgage difficulties talk with their lender early in order to better gain a hold of their mortgage difficulties and find solutions that will work for them and their situation. While there have been criticisms and many angry homeowners who believe that mortgage lenders are unwilling to help, there have been, again, increases the permanent modifications and there are also resources like the Making Home Affordable Program which can be a valuable aid to struggling homeowners as well.

Source:

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