The Federal Home Loan Modification Program And Foreclosures–Homeowners Face Troubles When Pursing Modifications

Numerous homeowners have attempted to acquire a home loan modification from the federal Making Home Affordable Program, but there have been a great deal of difficulties faced by certain individuals when pursuing mortgage modification assistance. While homeowners have simply not qualified in some cases, there have been plenty of complaints waged against mortgage servicers for numerous reasons concerning homeowners and their inability to find the assistance they need to prevent foreclosure.

One of the problems which homeowners have been facing centers around foreclosures while homeowners seek a modification. There have been cases where homeowners have been pursuing a home loan modification, but the bank was also pursuing foreclosure at the same time. Understandably, this has been very frustrating for numerous homeowners who have been in this position, but there have been states which have stopped this practice and there are calls for servers to restructure their modification efforts.

Recently, foreclosure suspensions by many top financial institutions added fuel to the fire in cases where homeowners were facing foreclosure despite the fact that they were in the process of being reviewed for a home loan modification plan. Many homeowners feel that these conflicting actions, where they are supposedly being considered for a foreclosure prevention plan but simultaneously served with foreclosure papers, is the result of improper foreclosure paperwork and procedures which were brought to light weeks ago.

Despite the fact that some states have implemented rules which allow homeowners time to negotiate with their servicer before foreclosure proceedings begin and guidelines from the Making Home Affordable Program which state that homeowners will not have their loan sent into foreclosure until they have been evaluated for a modification, there are still some problems in areas where homeowners feel proper review is not conducted.

It’s been argued that these cases in which homeowners have been facing foreclosure while pursuing a modification are not common, but many feel they do point to changes that need to be made in the modification process. However, major mortgage servicers within the Making Home Affordable Program have seen success throughout the year as permanent modifications have increased within the federal mortgage modification program and reports show that numerous homeowners are also getting assistance through alternative modifications.

Home loan modification programs, mortgage servicers, and homeowners in general have not been perfect in preventing foreclosure, but homeowners are being made aware that these assistance plans do still offer mortgage affordability options, but in cases where homeowners are having trouble dealing with their servicer, resources like the Making Home Affordable website or hotline have been consulted as well.