Reports on home loan delinquency have mixed reactions among many analysts who are weighing in on indications that homeowners who are behind on their mortgage payment have decreased over the recent months. The New York Times released a report stating that, in the third quarter, households that are behind on their mortgage payments fell, which many would be seen as a positive sign for the housing market and the general condition in which homeowners find themselves.
Homeowner modifications have been used by many financial institutions to help homeowners who are delinquent find the affordability they need so as to avoid foreclosure. However, there are homeowners who have simply been evicted from their home, which would obviously decrease the number of homeowner delinquencies being recorded, so this is given some analysts unsure feelings about reports of lower home loan delinquency rates.
The recent foreclosure suspensions by top financial institutions shed light on numerous problems and foreclosure processes used by banks, and brought to the forefront areas that need to be addressed concerning home loan foreclosure proceedings. While financial institutions are, in some cases, still looking into disputed foreclosures, the financial institutions that were involved with suspensions are still foreclosing on homes, which is troubling to homeowners who feel they were treated unjustly by their lender.
Many have stated that mortgage servicers were simply quick to foreclose on homes and did little to offer modification assistance or foreclosure alternative programs, like deed in lieu of foreclosure plans. However, there are indications that federal home loan modifications and foreclosure alternative programs are seeing increases, which would point to beneficial results in foreclosure prevention options. Also, reports concerning private home loan modification programs directly from servicers have stated that financial institutions are having more success than federal modifications, and this too points to positive signs for homeowners.
On the other hand, there are some analysts who say that homeowner delinquencies may rebound at the end of the year as foreclosure suspensions and other factors like unemployment may still have adverse effects on the ability of homeowners to meet their monthly mortgage payment.