Homeowners who fear foreclosure have often turn to home loan modifications as a way to not only find affordability in their monthly mortgage payment but also stop the foreclosure process so that they have time to find a solution to their particular mortgage predicament. Many homeowners have turned to modifications in a time where they are delinquent on their home loan, which is usually at a point where servicers have begun to consider foreclosure or have already begun the process.
Sadly, there have been troubles concerning the modification program and homeowners facing foreclosure as there are some reports which have stated homeowners have still been facing foreclosure despite being considered for a home loan modification at the same time. According to rules from the Making Home Affordable Program, servicers are supposed to halt the foreclosure process while a homeowner is being considered for a home loan modification but there have been instances where homeowners have received a foreclosure notice while being considered for a trial modification from the federal home loan assistance program.
Yet, advisers have suggested that homeowners not let this deter them from seeking foreclosure prevention assistance through either a federal modification, proprietary modification, or from finding assistance through one of the extension programs offered from the Making Home Affordable initiative. Obviously, home loan modifications will, ideally, bring homeowners a more affordable mortgage payment thanks to either a reduction in interest rates, extension of a homeowner’s mortgage term, or in some cases a principal reduction for a homeowner in an underwater situation.
However, there are still problems that remain within the Making Home Affordable modification program as both servicers and homeowners have been criticized for lackluster results which have been seen. There are problems with homeowners who either improperly applied to the modification program or who are still unable to meet mortgage payments even when a home loan modification program is in place. Usually, these difficulties have arisen thanks to extended unemployment or other financial hardships in the life of a homeowner, but they are one of the reasons that homeowners have seen results which have been deemed less than stellar.
Servicers have also had their fair share of criticism from homeowners as, again, many continue to still seek foreclosure on a home despite a homeowner applying for a modification and in the process of being considered, but there has also been criticism in areas related to servicers keeping homeowners in a trial period for far too long or seemingly denying a homeowner permanent modification assistance for no reason at all. Yet, there are still modification efforts in place and homeowners do stand to find foreclosure prevention through these plans, yet in order to avoid problems related to foreclosure or financial hardships, homeowners are still being prompted to contact their servicer early before their home loan situation becomes too problematic.