Obama Foreclosure Prevention And Modification Programs–Call For Broader Modification Plans Not Likely

Mixed reviews over the Obama modification program have led many to question whether further steps need to be taken in order to provide homeowners with a more affordable home loan modification option through the Making Home Affordable Program. There are instances where mortgage servicers have been blamed for the lackluster results of the modification program, but there are cases where homeowners have simply not followed the proper procedure for obtaining a modification.

While there are still troubles that remain for some of the nation’s top servicers, a recent report from Huffington Post stated that President Obama doesn’t believe that further changes should be made in the modification program as they could allow homeowners who are undeserving of assistance to find help through modification.

Foreclosures still remain a problem for many homeowners, and troubles from the Making Home Affordable Program include homeowners who claim that servicers have either lost their paperwork, kept them in a trial modification program for much longer than the minimum requirement, or simply denied them a home loan assistance program despite homeowners having met all of the qualifications.

It’s true that many homeowners have been assisted through the Making Home Affordable Program, as there are just over 466,000 homeowners that are currently in an active permanent modification, according to the September Making Home Affordable servicer report.

However, homeowners who may not benefit from the home loan modification plan and feel that the Obama Administration needs to do more to offer assistance to troubled homeowners do still have mortgage relief assistance in other areas. For example, proprietary home loan modifications and state mortgage assistance programs from the Hardest Hit Fund are also in place to assist troubled homeowners.

Yet, many feel that until factors like unemployment subside, mortgage relief efforts will continue to struggle no matter what measures are taken to ensure homeowners can receive an assistance plan or lower monthly payment.