Mortgage Aid And Foreclosure Prevention Plans–Will Big Bank Foreclosure Suspensions Bring Changes?

Mortgage assistance to help with foreclosure prevention efforts have been sought out by numerous homeowners over the past months as personal financial troubles and economic conditions have created hardships for homeowners and the housing market. Yet, recent foreclosure suspensions from large financial institutions like J.P. Morgan Chase, GMAC Mortgage, and Bank of America have caused homeowners to wonder if these foreclosure prevention plans that are set in place are helpful in preventing the loss of one’s home.

Some the nation’s top financial institutions participate in home loan modification programs and, mortgage servicers like J.P. Morgan Chase, GMAC Mortgage, Bank of America, Wells Fargo, and Citigroup, or some of the more well-known institutions who have been working with homeowners to lower home loan costs. However, animosity between homeowners and servicers has remained high over the past months as many men and women have had a difficult experience when it comes to the home loan modification processes.

Despite the fact that the Making Home Affordable Program has seen increases in the number of home loan modifications that have been made over the past months, there are still homeowners who are defaulting or facing foreclosure starts despite having a lower monthly mortgage payment. The source of these housing troubles is traced back to unemployment, in the majority of cases, so many homeowners have been calling on servicers to do more in the modification program to create affordable solutions.

While both governmental and private home loan modifications are available, not to mention programs like the second lien modification program, unemployment forbearance assistance, and foreclosure alternative plans, homeowners are still angry over their mortgage situation and recent revelations that foreclosures may have been improperly processed has only added fuel to the fire.

It is believed servicers who have suspended foreclosures in order to review the validity of these foreclosure documents in question will find that the vast majority of these cases are not erroneous. However, homeowners now feel that servicers are simply on autopilot when it comes to processing foreclosures and have little concern over whether they offer affordable foreclosure prevention programs to those in need.

Yet, homeowners do still have assistance options which may be used and, again, even unemployment mortgage assistance through forbearance options are available. While no mortgage servicer or assistance program is perfect, homeowners are being advised to not only talk with their servicer about assistance but also consult resources like the Making Home Affordable website or contact their state housing agency for assistance through programs like the Hardest Hit Fund, which may also provide home loan aid.