Homeowners who have been seeking a permanent home loan modification in order to make their home loan payment more affordable have had mixed results when dealing with the various lenders and the modification program. While permanent home loan modifications have increased over the past months there are still problems between servicers and homeowners when it comes to the Making Home Affordable Program.
One main complaint of homeowners is that servicers are not doing all they can to provide affordable home loan assistance options to homeowners in need. According to the June 2010 Making Home Affordable servicer performance report, there have been 38,728 trial modifications reported since May 2010. While many would say that this is a positive number for only a few short months, the overall number of trial modifications canceled, as of the June report, is 520,814.
Also, there are currently reported to be 389,198 active permanent modifications for troubled homeowners in the Making Home Affordable Program. Yet, homeowners point to the fact that 8,823 permit modifications have been canceled up to this point. While there are those who would argue that this number is minimal, there is concern that homeowners who have both seen cancellations in either a trial modification or a permanent modification may point to a problem in the overall program.
Unemployment is the main cause of many mortgage difficulties that homeowners are facing, but when a homeowner is living off of an income that is only provided from unemployment benefits or if the homeowner has seen cutbacks in their wages at their place of employment it’s understandable to see why these homeowners may still be defaulting even when given a modification.
Yet, many lenders and opponents of the modification program cite the fact that if a homeowner has lost their job or simply cannot afford their home loan banks are under no obligation to keep these homeowners in their house. Sadly, there are homeowners who simply cannot afford their home any longer, due to financial troubles, and many believe that these homeowners should not be given assistance that allows them to stay in their home when they truly cannot afford to pay their mortgage.
However, homeowners often point to the fact that many mortgage lenders and servicers are the reason for the economic meltdown and widespread job loss across the nation. Homeowners who are troubled in their home loan payment believe these institutions who were instrumental in making subprime loans to homebuyers and, ultimately, we’re setting the stage for the housing crash should be held accountable and assist those homeowners who were hurt as a result.
The modification program can be a source of frustration and hostility for both lenders and homeowners, but homeowners who may have trouble with their mortgage payments are still being advised to either contact their mortgage servicer if problems arise or consult the Making Home Affordable website or hotline for assistance in obtaining a home loan modification. While not every homeowner will get the mortgage assistance they need, there is more being done to provide options for homeowners who are having difficulty making their home loan payment and may face losing their home.