Federal Housing Assistance Through Home Loan Modification Program–How Are Homeowners Getting Help?

Federal housing assistance has been made available through various programs set in place in order to assist homeowners who are suffering financially and unable to meet their monthly mortgage obligation. The most common form of housing assistance from the federal government has come from the home loan modification program enacted by the Obama Administration.

Over the past months, more and more homeowners have been able to receive a modification from the Making Home Affordable Program with the assistance of some of the nation’s top lenders like Bank of America, J.P. Morgan Chase, Citigroup, and Wells Fargo. While there have been troubles between the servicers and many homeowners, there have also been in-house assistance plans available directly from mortgage servicers that have assisted those homeowners who did not meet the criteria to receive a permanent home loan modification.

While the Making Home Affordable Program has provided federal housing assistance through modifications for numerous homeowners, there are still those who have been troubled with their mortgage payment and have been unable to meet their financial obligations. There have also been assistance opportunities for homeowners with an underwater mortgage through programs like the Federal Housing Administration short-refinance plan.

Essentially, homeowners who have an underwater mortgage may qualify for a new FHA home loan if their mortgage servicer is willing to work with them and lower the principle on their underwater home. Many homeowners have seen a decrease in the value of their mortgage over the past months and, as a result, have sought out ways to deal with a troubling situation where they owe more on their home than their home is worth.

These federal housing assistance plans have gotten mixed results by homeowners but they have created extension programs and offers, like modifications directly from lenders, have provided troubled homeowners with more options in dealing with their mortgage situation. While no housing assistance plan has been perfect, homeowners are now finding that they may have more options when it comes to saving their homes from foreclosure.