Home Loan Modifications Continue But Foreclosure Starts Still A Problem For Homeowners

The Making Home Affordable modification program is reported to have made 3.52 million modifications between April 2009 and August 2010. This number is said to be nearly triple the amount of foreclosure completions which were made during that same time period, according to the October Housing Scorecard from the Obama Administration.

While some of the nation’s top financial institutions like Bank of America, Chase, GMAC Mortgage/Ally Financial, Citigroup and Wells Fargo do still offer home loan modification plans from the Making Home Affordable Program, and proprietary home loan modifications as well, foreclosures still remain a problem for homeowners across the nation.

There are some arguments that, as of late, these modification efforts and foreclosure prevention plans have begun to slow, which has allowed foreclosures to begin outpacing home loan modifications. Yet, homeowners also have opportunities outside of traditional modifications, like proprietary home loans, extension programs from the Making Home Affordable Program to address issues like second liens and unemployment, and even options from the FHA to bring mortgage relief to homeowners.

Mortgage servicers did see increases in some cases concerning the August 2010 Making Home Affordable report, there are indications that the program has begun to make less permanent modifications each month. Some feel that homeowners are simply unable to qualify for mortgage modifications due to their financial situation, but there are those who feel that homeowners may simply need more options when it comes to preventing foreclosure as slow economic recovery and unemployment still cause difficulties in the lives of countless individuals.

Again, there are programs beyond home loan modification options which may be helpful for homeowners who are struggling to make their mortgage payments. While the Hardest Hit Fund has provided financial assistance to various state housing agencies which may address certain homeowner problems, underwater refinancing plans from the FHA, and proprietary modifications made directly from mortgage servicers do still offer assistance for homeowners in need.

While it may seem that the Making Home Affordable Program has slowed, homeowners are still able to find options which may allow them to lower their monthly mortgage payments and avoid the loss of their home.