More homeowners in of need mortgage assistance have begun exploring extension programs which are offered from the Making Home Affordable Plan and directly from servicers. Traditional home loan modifications are said to have slowed over the past months and, as a result, many homeowners are still facing a difficult situation concerning their monthly mortgage payment.
However, mortgage assistance options through HAMP do still offer certain homeowners affordability opportunities when it comes to avoiding foreclosure. Unemployment forbearance programs, underwater refinancing, and assistance available directly from servicers have all been used by various homeowners in order to avoid the loss of their home.
Obviously, unemployment is a major issue which homeowners are having to combat as high levels of joblessness continue across the nation. Yet, some homeowners who are without a job may be able to take advantage of unemployment forbearance opportunities through the Making Home Affordable Program or state-specific unemployment assistance programs tailored specifically for homeowners.
Also, homeowners who may have an underwater home loan do have refinancing plans which may be available for homeowners with Fannie Mae or Freddie Mac, or through the FHA’s refinancing program. Understandably, underwater homeowners are suffering in a variety of ways, so these refinancing plans or, for some homeowners, principal reduction options, may be able to offer the sustainability that homeowners need while combating a situation where negative equity is causing problems.
However, there are alternatives to foreclosure which homeowners may be able to use if these various assistance plans are unavailable. Homeowners who are struggling with an underwater mortgage may be able to short sale their home and be free and clear of their underwater predicament. Also, some homeowners have turned to options which have allowed them to surrender their deed to their mortgage servicer in cases where modifications are unhelpful or unavailable.
While it needs to be understood that not all homeowners may benefit from these extension programs, homeowners are being advised to consult their mortgage servicer or approved housing counselors if mortgage payment difficulties arise. Again, these foreclosure prevention efforts are not perfect, but homeowners who address their financial problems early may have a better chance at finding a solution to their mortgage troubles.