Home loan modification programs from the federal government’s HAMP initiative have been seeing increases in success according to multiple reports released by the Treasury Department, but there have been calls for the financial institutions to begin furthering modification efforts. Home loan modifications have been said to have slowed as of late and more homeowners are beginning to see foreclosure rather than mortgage assistance on their home.
While many financial institutions argue that proprietary home loan modifications have begun outpacing federal modification plans, thus offering more foreclosure prevention options, there are some problems which many feel need to be addressed concerning home loan modification opportunities.
Some homeowners are having difficulty with the modification process for numerous reasons and are frustrated by the fact that financial institutions are allowed to pursue foreclosures while homeowners may be in the process of being considered for a home loan modification plan.
There have also been arguments from homeowners who state that banks have either kept them in a trial modification for too long or upon successfully completing a trial modification, some financial institutions have been denied a permanent modification and faced foreclosure as a result.
Foreclosure suspensions by top mortgage servicers also gave evidence that many financial institutions may not have been properly considering homeowners for these modification programs. Foreclosure reviews which have been conducted by many of these banks did point to the fact that homeowners who lost their home to foreclosure were in a position where they had missed payments and thus qualified for eviction, but arguments state that these individuals may have been able to save their home if a proper modification program was implemented.
While there are alternative mortgage assistance plans from HAMP available and federal, as well as, proprietary modifications are still ongoing, factors like job loss and underwater homeowners are still creating a great deal of problems for many and could result in further foreclosures in the coming months. It’s understandable that home loan modifications are not going to stop every home from foreclosure, but many attorney generals are calling on banks to begin upping their efforts through these foreclosure prevention plans.