Report On Treasury And Making Home Affordable Home Loan Modification Program–Should Changes Be Made?

The Congressional Oversight Panel recently released a report concerning the Making Home Affordable modification program, which was first launched by the Treasury Department in 2009, and some issues which were raised concerning the modification efforts from HAMP have centered around on its effectiveness and the assistance which has been offered to homeowners. Individuals who have faced difficulty in their mortgage payment obligations have turned to large financial institutions as a way to gain the affordability they need through these home loan modification efforts, but many feel that the results of the Making Home Affordable Program were somewhat lackluster.

Treasury officials have stated that over 500,000 homeowners have received permanent home loan modifications, as of the most recent Making Home Affordable report, but the initial goal of between 3 and 4 million homeowners who were thought to have been helped seems to be out of reach for the program at the present time. Factors like unemployment are said to have hindered the success of the modification program as there are still homeowners who are defaulting despite having a modification plan in place.

The problem with homeowners redefaulting is still a trouble which the program has faced and must be dealt with, but it seems that with such high unemployment levels of still remaining, homeowners who may be offered a home loan modification could be in a position where they cannot sustain even these lower payments, which will eventually lead to the loss of their home.

Income difficulties for homeowners have disqualified many from a home loan modification assistance plan, but it has also lead to troubles for some homeowners within the modification plan as cutbacks in wages and job loss continue to put a strain on household income, even for those who are participating in the Home Affordable Modification Program.

There are opponents of the home loan modification program who say that changes still should be made if this foreclosure prevention effort is to see more positive results, but there are those who point to the fact that proprietary modifications, which are reportedly seeing a great deal of success in terms of homeowners who have received a permanent modification, have greatly benefited from the standard which was set in place by the federal modification plan.

Understandably, there have also been homeowners who have had a wide range of complaints concerning home loan modification effort, but as modification opportunities continue through the end of 2010 and will remain in place throughout 2011, it’s hoped that more homeowners may be able to find a modification option from the federal mortgage assistance program or in-house plans which will allow them to prevent foreclosure. It’s true that there have been increases in the number of permanent modifications that have been seen over the past months, yet the concern for many at the present time is not only increasing these numbers but finding methods for keeping these modified payment plans at a sustainable level so that homeowners can avoid defaults within modification programs.