Home Loan Modifications Outnumber Foreclosures As Troubled Homeowners Receive More Assistance

Recent reports from the Housing Scorecard, which provides data from the Department of the Treasury and Department of Housing and Urban Development, have stated that almost double the amount of modifications are being begun compared with the number of foreclosures that homeowners are facing. Reports from both the July and August Scorecard stated that more homeowners are finding assistance than those who are losing their home.

While troubles remain between homeowners and many mortgage servicers in the Making Home Affordable Program, initiatives by the FHA, mortgage servicers, and governmental foreclosure prevention programs have provided more options for homeowners who are struggling to make their home loan payments.

According to the August report, 3.15 million modification arrangements had been made through June of 2010. However, it was reported that 1.24 million foreclosures had taken place during the same timeframe. While this may seem positive for many, there are still countless homeowners who are facing foreclosure and need some form of mortgage assistance to keep their home.

Foreclosure prevention efforts and alternative programs have been offered but many feel that with unemployment still causing such a problem and these initiatives being slow to bring results, more homes will be lost in the future. Homeowners are able to use various modification programs from the Obama Administration and in-house programs available directly from lenders, but also, homeowners may be able to avoid the foreclosure process by short selling their home or participating in a deed in lieu of foreclosure plan.

While modification programs that were begun do indeed outnumber the amount of foreclosures that have been made, according to the Scorecard Report, there’s the problem that some homeowners within the modification program will default and still face the loss of their home. While some homeowners can benefit from a modification or mortgage assistance, due to unemployment or unemployment many homeowners are simply unable to continue owning their home, and for this the only solution is job creation.