Many homeowners who are struggling to make their payments on their mortgage from month to month have been trying to obtain a trial modification, in the hopes that a permanent home loan modification but soon follow. Typically, a homeowner in the Making Home Affordable Program trial modification period will be able to have their mortgage modified for a short period of time, usually three months, and upon the successful completion of this trial phase, will be granted a permanent home loan modification.
However, there have been troubles among homeowners and lenders as there are homeowners who say that lenders are causing the trial period to last longer than they should or are canceling and denying trial periods for homeowners in need. As of June 2010, the Making Home Affordable servicer report stated that there are currently 364,077 active trial modifications. Yet, the problem that many homeowners have is the fact that as of May 2010, 344,869 trial modifications had been canceled and 538,577 homeowners were not accepted into a trial modification phase at all.
While these rejections and cancellations have many homeowners angry, statements from mortgage lenders point to the fact that there are common mistakes or causes for cancellations and rejection from trial modifications. For homeowners who have had their trial modification canceled, common causes are said to be missing or improper documentation, a default while the homeowner is in the trial modification phase, or a homeowner simply being an eligible because their debt to income ratio is below 31%.
Homeowners who have been denied a trial modification are said to be rejected from the program because, again, they either have a debt to income ratio that is already below 31%, there is missing documentation or improper paperwork has been filed, or a homeowner is not in a position where default is imminent.
Again, homeowners are still frustrated with the modification program in many cases since modifications tend to be a last resort for many. However, there are in-house mortgage assistance options available from various lenders, yet many homeowners who have struggled through the modification program only to be denied or rejected are, obviously, angry and asking what more they can do.
Homeowners that have been experiencing trouble can talk with their lender about modification requirements and options, but many believe that lenders do not have a homeowner’s best interest in mind in every case. There are also outside sources like the Making Home Affordable Program website and housing counselors that are approved by the Department of Housing and Urban Development which can also assist homeowners who may be having a difficult journey through the modification program.