Home Loan Mortgage Foreclosure Suspensions–Are Home Loan Modification Plans Still Helping Homeowners?

With mortgage servicers like J.P. Morgan Chase, Bank of America, and GMAC Mortgage/Ally Financial suspending foreclosures due to questions over documentation and the legality of some of these proceedings, many homeowners are beginning to ask whether they were unjustly foreclosed upon, while others are wondering if home loan modifications are still helping homeowners since so many foreclosures are occurring.

It’s understandable that homeowners are frustrated over the recent revelations that some foreclosure documents were not even reviewed before being processed. While homeowners are upset in certain cases due to these practices, it’s believed that the vast majority of these foreclosures in question will be discovered to have been processed justly, meaning that homeowners would have faced foreclosure even if paperwork had been processed correctly.

However, countless homeowners are still facing foreclosure or are defaulting on their home loan payment despite having options like home modifications in place. Homeowners are still critical of many mortgage servers despite there have been positive results in both private and governmental modification programs, as there have been more homeowners offered these forms of assistance over the past months.

Yet, again, defaults and foreclosures remain a problem, which is evident by the vast number of foreclosures that were said to have been coming across financial employees’s desks, which caused many to simply sign these documents without reviewing their validity. Employees at these financial institutions who do not properly review paperwork are believed to, by and large, be in error for doing so, but a more pressing question is why were there so many foreclosures that could have potentially been reviewed?

Understandably, unemployment has a huge role to play in the housing difficulties that many homeowners are facing. Yet, many angry homeowners still call for more options or more affordable modification programs, so that defaults and foreclosures can be prevented. Job reports offer little hope that the countless individuals who are out of work at the present time will be able to quickly find stable employment, but there is hope that more employment options will be available in the coming months.

Until that time, homeowners will likely continue to struggle unless more affordable mortgage payment solutions can be found or factors like the holiday season allows homeowners employment opportunities that can help them meet some of their financial obligations for at least the present time.