Home loan modifications from the government’s Making Home Affordable Program are still available to homeowners despite indications that these mortgage assistance plans may have slowed and, according to homeowners, may not be helpful to homeowners in certain situations. Over the past months, many of the nation’s top mortgage servicers have seen increases in the number of permanent modifications they have made through this governmental assistance program.
Yet, more homeowners are finding that they cannot sustain the payment arrangements through these home loan modifications and are re-defaulting despite the fact that they have a lower mortgage payment plan in place. Obviously, homeowners who obtain these mortgage modification plans are those who are facing foreclosure, but more so, homeowners that have begun missing payments on their mortgage had been those who have either seen a reduction in their income or have lost their job altogether.
Understandably, homeowners who have lost their income due to unemployment will not benefit when mortgage payments are still required, even if these payments are drastically reduced. For this reason, extension programs have been offered through the Making Home Affordable Program to address unemployment difficulties, underwater mortgages, or factors which may be in place like second mortgages, that may also make a modification unhelpful.
Bank of America, J.P. Morgan Chase, Citigroup, and Wells Fargo are just a few of the financial institutions who are continuing to make these modifications from the Obama Modification Program. However, despite these lenders and other mortgage institutions working with homeowners across the nation, foreclosures still remain a problem and missed payments on mortgages are still common among many homeowners.
However, it’s hoped that with mortgage extension programs, continued modification efforts, and alternative mortgage modification plans available directly from servicers, more homeowners may be able to save their home in the coming months as economic conditions slowly improve. Yet, there are still concerns over the sustainability of these programs as many homeowners have been fighting to save their home from foreclosure but have had little success and have lost their home as a result.