Concerns over foreclosures in the early part of 2011 have many who feel that foreclosure prevention efforts need to be revamped in the new year as there are predictions that home foreclosures may top 100,000 in January. Obviously, homeowners have called on home loan modification efforts to be accelerated as there are reportedly more homeowners who are facing foreclosure than are seeing home loan modifications.
However, there are still some individuals who may be able to use home loan refinancing as a way to find a more affordable monthly mortgage payment. Interest rates on home loans are reportedly rising from their record lows which were seen throughout 2010, but there are many homeowners who still stand to see a significant drop from their current mortgage rate through refinancing. During 2010, low interest rates on home loans led many to refinance to either shorter mortgage terms, which brought about an overall lower home loan cost and a shorter timeframe for erasing mortgage debt, but many also extended the length of their mortgage or refinanced for a fixed rate mortgage so that they could acquire a lower monthly mortgage payment.
The problem with refinancing, though, has usually been that homeowners who are facing unemployment, may not be in a financial position to benefit from refinancing, or have an underwater home loan, which has disqualified them from some forms of traditional home loan refinancing. However, home loan modifications were used by many major financial institutions and mortgage servicers as a way to offer affordability to homeowners facing the loss of their home. Yet, there have been homeowner who have continued to wage complaints against many banks as there are those who feel that financial institutions are unwilling to provide homeowner assistance on a wide scale, despite the fact that permanent modifications have increased over the past year.
It’s understandable that homeowners are frustrated when unemployment and the potential loss of their home are factors present in their life, but there are not only federal home loan modification plans which have helped homeowners find financial assistance in their home, but in-house modifications directly from mortgage servicers have also been used as a way to stop foreclosure on many homes.
Yet, there are still homeowners who face the loss of their home due to economic hardships and their inability to find an affordable mortgage assistance plan. However, reports that state there could be around 100,000 foreclosures in the first month of 2011 are said to be the result of the robo-signing scandal that occurred a few months ago and holiday foreclosure moratoriums which many major financial institutions put into effect in the last part of the year. However, housing troubles do continue as a result of unemployment and other economic factors, so issues like home loans and unemployment are hoped to be addressed in the coming months so that more homeowners may find more financial stability and security in their home and personal life.