Alternative home loan modification programs have brought lower payment opportunities and foreclosure prevention assistance to homeowners over the past months as these in-house home loan assistance programs have provided an alternate route for homeowners who may have difficulty finding the help they need through the federal home loan modification program. Reports have indicated that servicers continue to use both the Making Home Affordable Program as a way to provide modification assistance, but there are also proprietary modifications being offered by servicers as a way to combat foreclosure difficulties.
A report on Housingwire.com stated that there are indications that homeowners are receiving more assistance as data has shown that more homeowners have seen permanent modifications, through the month of November, then have seen foreclosure. This information comes from a mortgage alliance, HOPE NOW, which has stated that both proprietary and federal modifications combined have outnumbered foreclosures. Reportedly, mortgage servicers who offer proprietary, in-house home loan modifications have greatly helped these numbers as over 82,000 in-house home loan modifications were made in November.
Understandably, there are still homeowners who are in need of alternative foreclosure prevention options as some are having trouble making their way through the home loan modification program from HAMP. Yet, these in-house modifications are reportedly outnumbering federal modifications, despite the fact that federal home loan assistance plans from the Making Home Affordable Program may be more popular and widely known.
These in-house mortgage assistance opportunities to prevent foreclosure are not guaranteed to every homeowner nor have they helped all who have received them, as homeowners still state that they are having trouble meeting payments when a modification plan is in place, in certain instances. Yet, homeowners are still being prompted to contact their servicer and inquire about either of these foreclosure prevention options, as again, some homeowners who may not qualify for a federal home loan assistance plan could benefit from a proprietary home loan modification and avoid the loss of their home as a result.
There are options for homeowners to consult housing counselors if they are having financial difficulties or need guidance through a home loan modification application process, but talking with one’s servicer directly has also benefited numerous homeowners as a homeowner’s particular position may either qualify them for federal home loan assistance or, if federal aid is unavailable, they may qualify for one of these in-house modification plans which are becoming more popular among homeowners.