Foreclosure prevention opportunities have been made available to homeowners through the Making Home Affordable modification program, alternative modifications made from in-house programs directly from mortgage servicers, and from HAMP extension plans, just to name a few. There are a variety of troubles that homeowners are facing at the present time but numerous governmental agencies and financial institutions do have options available that may be of assistance to homeowners who face the loss of their home.
However, there are homeowners who feel that more individuals are facing foreclosure than are actually being helped through these mortgage foreclosure prevention efforts. Yet, mixed reports often make the state of home loan assistance versus foreclosures hard to discern as sources like the Making Home Affordable website recently published a housing scorecard report which stated that the number of total modifications which have been offered is double that of foreclosures. According to the scorecard report, 3.73 million modification arrangements were started between April 2009 and August 2010.
On the other hand, there are those who say that despite the fact that permanent home loan modifications have increased over the past months, some reports may not take into account the number of mortgage assistance plans which have failed. There are homeowners who have defaulted out of federal mortgage modification programs and in-house home loan modification plans made directly from lenders.
A report on Bloomberg.com has stated that homeowners are dropping out of the federal foreclosure prevention program at a rate which outpaces the number of homeowners who are being offered these foreclosure prevention options. While reports from the Obama Scorecard did say that the number of foreclosures which have been completed did not outnumber modifications, it seems that federal home loan modifications are beginning to slow and foreclosures are becoming more numerous.
However, there are some reports which have indicated that a greater number of homeowners are being assisted through in-house modification plans made directly from various financial institutions. While none of these modifications have been perfect, homeowners are still being advised to speak with their mortgage servicer, a HUD-approved housing counselor, or consult their state’s housing agency to see if mortgage assistance options may be available in their area and for their particular mortgage situation.
Modifications will obviously not stop all foreclosures, but as unemployment and economic conditions have not improved to a level that has offered stability and mortgage sustainability to homeowners, it’s hoped that these assistance plans and extension programs will begin to prevent more foreclosures in the coming months.