The housing report from the Treasury Department and Department of Housing and Urban Development was recently released and provides data from July 2010 about efforts to stabilize the housing market and assist homeowners in their home loan difficulties. Unemployment, among other economic troubles, have caused both homeowners and the housing market in general to suffer, but as a result programs were implemented to help correct troubles in the housing market.
For instance, the report mentions that historic low rates on mortgages continue to aid homeowners who are refinancing to a more affordable home loan payment. It’s reported that since April 2009, 7.2 million homeowners have been able to refinance and obtain a more affordable home payment thanks to low mortgage interest rates. Currently, many homeowners are refinancing to a 30-year fixed mortgage in order to lock in some of these low rates and get a more affordable home loan.
Foreclosures have also been a concern and a problem for some homeowners but mortgages have been restructured over the past months and these alternative assistance plans for homeowners have been made in greater number than foreclosure completions. Essentially, the Housing Scorecard reports that more homeowners are receiving assistance than are seeing foreclosures on their home. The Housing Scorecard indicates that nearly 3,000,000 borrowers have seen a restructured mortgage since April 2009, which has overshadowed the 1.24 million foreclosure completions in that time frame.
Overall, modifications on home loans are said to have increased to 2.95 million, which includes over 1.2 million homeowners who have received a trial modification under the Making Home Affordable Program. While there are still problems being felt in the Obama Home Affordable Program, more homeowners are seeing permanent modifications from month to month than in the past and data from the Home Affordable Modification Program monthly report indicates that homeowners who are being denied a trial modification or having their trial canceled are receiving alternative forms of assistance from lenders and various foreclosure prevention programs.
While there’s still a long way to go in the housing market recovery and, until unemployment is abated there is concern that more homeowners will still suffer and need mortgage assistance, there are more positive results being seen from the housing market and modifications in general. Homeowners are still troubled and being denied mortgage assistance in some areas, but it seems that a slow increase in the number of homeowners that are being helped through various mortgage assistance plans is aiding numerous homeowners who are in need of a way to keep their home and avoid foreclosure.