Federal mortgage modification plans have been used by homeowners over the past months as a way to find affordability that is needed to avoid foreclosure in their home. Yet, these federal assistance plans have not always been helpful to every homeowner and, even when an alternative modification is available, not all homeowners have been able to benefit from these federal and mortgage servicer assistance options.
However, funding which was given to state housing agencies in areas that were particularly hard hit by unemployment, underwater mortgages, and the recession in general, may offer homeowners the opportunity to reinstate their mortgage or avoid the loss of their home due to factors like foreclosure. While not all states have been able to use funding from the Obama Hardest Hit Fund and certain state housing agencies that have begun formulating these plans have yet to put them in place, homeowners may still have foreclosure prevention options through these state modification plans.
The implementation of these state-specific home loan assistance initiatives will be dependent upon the various state housing agencies and a homeowner’s location as to what types of modification options are available. Yet, some of these home loan modification and foreclosure prevention plans do offer funds for homeowners who are unemployed to remain in their home for a set period of time while they continue to seek a job.
Also, there are some programs which offer funding for homeowners to become current on their mortgage and reinstate them to a status that will put them in a more advantageous position to resume payments on their home loan. Some homeowners simply got behind on their mortgage payments for various financial reasons and are unable to dig themselves out, but these reinstatement programs offered through some housing agencies may help homeowners get back on their feet, in terms of their mortgage obligations.
Again, these programs are not offered in every state and may be limited in the states where they are present, but homeowners may be able to work with either state housing agencies or their primary mortgage servicer in order to take advantage of these opposing prevention efforts or unemployment assistance plans.