Mortgage Modification Options For Homeowners–Home Loan Payment Reduction Plans Available But Do They Help?

Mortgage modification opportunities have been made available to homeowners through various programs over the past months and, for some, have provided the affordability they needed to avoid the loss of their home. Home loan payment reduction plans through options like the Making Home Affordable modification program and proprietary home loan modifications available directly from mortgage servicers have helped troubled homeowners, but are these programs, overall, beneficial when it comes to preventing foreclosure?

Concerning the Making Home Affordable Program, some of the nation’s top mortgage servicers like Bank of America, Chase, Citigroup, Wells Fargo, and GMAC Mortgage, just to name a few, have been participating in this governmental initiative to lower mortgage payments for homeowners. These plans may include principal reductions, interest rate reductions, or mortgage term extensions, all of which are beneficial when it comes to lowering the monthly mortgage payment obligation many homeowners may have.

Yet, numerous homeowners have concerns and complaints when it comes to these home loan modification plans, and rising numbers of foreclosures have cast doubt on the helpfulness of these modification initiatives. While some of the blame for the trouble within these programs falls at the feet of the mortgage servicers, there are others who blame homeowners or factors like unemployment for what many deem to be lackluster success for modifications.

There are those who feel that modification programs only benefit servicers and, by and large, are only delaying foreclosure for homeowners who are in need of help. Yet, there are homeowners who still default despite having a modification plan in place, and this problem is said to be a result of unemployment or a reduction in a homeowner’s income.

While there are numerous causes of mortgage difficulties, homeowners are still frustrated over the amount of foreclosures which are being seen and the seemingly unhelpfulness of certain modification plans. While there are reports that modifications made directly from mortgage servicers have been outnumbering governmental modifications, homeowners still feel that more efforts need to be made within the housing market and from servicers in order to reduce the amount of foreclosures which are being seen at the present time.