Numerous states across the nation have been participating in mortgage assistance plans, which offer homeowners similar benefits to the federal modification program. These state home loan modification plans are set to offer homeowners, depending upon the state, options that will prevent the loss of their home through efforts to help unemployed homeowners, homeowners who are behind on their mortgage, and even those who may have an underwater home loan situation.
Homeowners are being advised to consult governmental resources on these programs or contact their state housing agency to see what state modification plans may be available. Again, the types of assistance which will be available to numerous homeowners will vary from state to state, but some of these states have been unable to get their mortgage assistance plans up and running as of yet, so they have not helped homeowners in need at the present time.
While it’s believed that many of these state housing agencies will be able to implement their state modification plans by the beginning of 2011, those who have already begun their programs may have only done so in limited cases. Obviously, these plans which may, in some ways, mirror federal modification programs are hoped to simply provide affordability to homeowners who cannot make their mortgage payment or have fallen behind on their home loan obligation.
Understandably, not all homeowners will qualify for these state home loan modification programs, but assistance to bring homeowners current on their mortgages, reduce principal amounts in cases where an underwater mortgage is causing trouble, or provide loans and other financial assistance for unemployed homeowners are some of the more common types of modification assistance which may be available from various state housing agencies.
There may be some programs implemented from these state agencies which will require homeowners to work with their servicer as well, but it’s hoped that the variety of assistance plans which may be available from both state and federal sources will do more to prevent foreclosures in the coming months. While state modification plans are no guarantee when it comes to helping homeowners avoid the loss of their home, individuals who are unsuccessful at federal modification programs or extension plans from HAMP may still have foreclosure prevention options available through their state.