Making Home Affordable Program–Do Home Loan Modifications Help Homeowners Get Lower Mortgage Payment?

The Making Home Affordable Program has been used by a variety of the nation’s top mortgage servicers like Bank of America, Chase, Wells Fargo, and Citigroup to provide homeowners with a more affordable mortgage payment. Obviously, unemployment has been a very large factor in the troubles the housing market has seen over the past months, but the modification program has provided assistance to numerous homeowners and has kept many from foreclosure.

However, there have been troubles between mortgage servicers and homeowners as many believe that these financial institutions are unwilling to make modifications more available to homeowners and, according to some, these servicers have little to no interest as to whether they help homeowners avoid foreclosure or not. There are numerous homeowners who believe that these home loan modification plans are unhelpful and, even in cases where a homeowner may benefit from mortgage assistance, mortgage servicers are unwilling to provide this type of home loan modification aid.

Yet, mortgage servicers argue that not all homeowners can qualify for a home loan modification through the Making Home Affordable Program and, for those who are disqualified from the federal modification plan, in-house mortgage assistance options are available. It has been reported that more homeowners have been helped from alternative modification than those who have succeeded in the Making Home Affordable Program.

While it’s understandable that no mortgage servicer has been perfect in their implementation of these mortgage assistance plans and there are some accounts from homeowners who were denied a modification that are quite troubling, there are alternative paths that may lead to a foreclosure prevention program that is affordable for homeowner. Sadly, there are cases where modifications are simply not enough and homeowners default even with a home loan modification plan in place.  It’s believed that with the home loan modification programs still ongoing, in-house alternative modification plans available, and Making Home Affordable extension programs in place, homeowners who are fighting to keep their home may now have more options to make their mortgage payments more affordable.