There are reports that have indicated permanent home loan modifications dropped recently, but the availability of home loan modifications from the Making Home Affordable Program is still present. Housingwire.com recently published a report which does indicate that home loan modifications from the Making Home Affordable Program did slow recently despite the fact that servicers are still working with homeowners and the need for mortgage assistance and foreclosure prevention is still present.
One of the major problems, though, within the Making Home Affordable modification program is the fact that unemployment still remains a major hurdle for homeowners and has been the reason that many have defaulted even when a mortgage assistance plan is in place. While there are programs which can help homeowners transition to a new living arrangement, many individuals have become frustrated with the fact that these reduced payment plans on their mortgage are not helping.
There are some who feel that as the economy slowly recovers and homeowners may find more income opportunities, mortgage modification assistance may become more helpful as well. Ideally, homeowners who are struggling would rather find an income that allows them to return to their original payment, meaning they can afford to meet their debt obligations, but even if a reduction in one’s income is present, modifications can be helpful.
However, the problem concerning this matter is that some homeowners have simply seen such a drastic drop in their income, if they even have an income at all, that these mortgage modification programs are simply unhelpful despite having offered reduced payments.
Yet, homeowners are still able to qualify for home loan modification programs from the Making Home Affordable Plan. These reports that modifications have dropped do not indicate that there are not modifications being made, only a smaller percentage was made from September to August. Also, some feel that the reason for this drop in governmental modifications may be that homeowners are choosing in-house, proprietary modifications offered directly from servicers as an alternative.
No matter the reason for these drops, homeowners do still have foreclosure prevention opportunities through not only home loan modification programs, but extension plans from the Making Home Affordable Program like unemployment assistance, underwater mortgage aid, and modifications on homes which may have a second mortgage.