Reports indicate that alternative home loan modifications have assisted a great deal of homeowners who may not have been accepted into the Obama Making Home Affordable foreclosure prevention program. While reports that indicate these in-house, servicer-direct modifications have outpaced the number of homeowners who have been assisted through the Obama Administration’s modification plan, there are concerns that troubles remain for homeowners who may be struggling with their mortgage.
CNN Money reports that 22% of homeowners who are given a modification through these in-house modification programs have redefaulted. While it is reported that these figures are looking at loans that were modified late last year, there are still concerns over these in-house modification programs as many complain they do not lower a homeowner’s monthly mortgage payment to the extent the Making Home Affordable Program does.
However, those on the other side of the argument feel that troubles like unemployment still remain to be the driving factor as to why homeowners are unable to meet their monthly mortgage payments. There are, sadly, some homeowners who simply can no longer pay their mortgage even if a modification program is in place.
Yet, homeowners believe that servicers have made obtaining a modification through the Making Home Affordable Program more difficult and are still being unhelpful even when an alternative modification is sought out. Understandably, homeowners who obtain a lower monthly mortgage payment or more likely to continue making their payments and avoid defaulting, but since in-house, servicer-direct modifications have no specific guidelines, payments are not lower to a specific percentage, unlike the Making Home Affordable Program.
While difficulties remain between homeowners and servicers, there is hope that despite homeowner defaults continuing, more will find the foreclosure prevention assistance they need through either an in-house modification plan or the Making Home Affodable modification program.