According to the July report from the Making Home Affordable Program fewer homeowners were seen as eligible for the modification program, which can be interpreted to be either a good sign that fewer homeowners are delinquent on their home loans or there are simply less homeowners who remain in their home that are still distressed.
The servicer report for July 2010 indicates that 1,456,363 homeowners potentially qualify for a modification when they are more than 60 days delinquent on their home loan. While this is an estimated number, it’s a reduction in the number of homeowners from June 2010. The servicer report for June 2010 stated that 1,623,584 homeowners were in this group of estimated delinquent borrowers.
These numbers consider all homeowners as of May 31, 2010 who have a conventional loan that is either in foreclosure or bankruptcy, but does not take into account homeowners with FHA or VA home loans, mortgages that are less than 60 days delinquent that might be eligible for a modification, or borrowers with a debt to income ratio of less than 31%.
While some see these reductions in the number of delinquent homeowners as a good sign that more homeowners are either getting assistance or are finding ways to pay their home loan, there are some who see this data as an indication that fewer homeowners are getting assistance.
Comparing June’s modification data with July’s, there were 167,221 fewer homeowners who were delinquent, which again, may be seen as a good sign. Yet, there were only 32,606 more permanent modifications made from June to July and 108,143 fewer trial modifications from the same period.
There remains mixed feelings over the modification program and frustrated homeowners continue to report on difficulties they’ve had when seeking mortgage assistance. However, those who are optimistic say that these numbers do not reflect certain mortgage assistance plans, like those for FHA or VA homeowners, and do not take into account in-house program assistance options from lenders themselves.
Homeowners do still have a variety of options when seeking assistance as there are multiple avenues that can be explored when a homeowner faces the loss of their home. While mortgage servicers are the primary contact point to begin a modification program, outside aid can also be sought from the Making Home Affordable website and HOPE Hotline for homeowners who need additional information or assistance aside from their lender.