Loan modification and mortgage assistance for homeowners who are delinquent on their home loan, unemployed, or who may be suffering from an underwater mortgage may have alternative options from state housing agency programs which have been set in place to offer various aid to homeowners in specific areas that have been severely hard hit in their housing economy. These funds may offer aid to homeowners in order for them to keep their home or could offer assistance for those who face the inevitable loss of their home but may be able to qualify for a foreclosure alternatives plan.
Many of these programs, like those from the Hardest Hit Fund, can offer aid to bring homeowners current when they are behind on their mortgage, principal reduction opportunities for those who may be suffering from negative equity on their home, and there are programs to meet a homeowner’s monthly payment obligation on their mortgage while they continue to look for work. Obviously, these programs are only available in certain states as particular areas of the nation have seen a great deal of difficulty related to unemployment and their housing industry thanks to the recession years ago.
There are those who still argue that our nation has a long way to go when it comes to fully recovering from the harm done from the economic downturn and this is evidenced in areas like Michigan, Florida, California, and Nevada who are still seeing troubles related to their homes and state economies. Yet, it’s hoped that foreclosure prevention efforts in these areas, among others, will be able to prevent the loss of homes and widespread foreclosures which could do further damage to a state’s housing market.
There are those, however, who feel that foreclosure prevention efforts only delay the inevitable in the majority of cases and by keeping homeowners in their home who will, eventually, be foreclosed upon or default once again is counterproductive to repairing the housing economy nationally and should be avoided. Yet, there are obviously homeowners who would argue against this line of thinking as many have benefited from foreclosure prevention programs and argue that if more foreclosures are seen, which leads to houses left sitting empty, then the housing market may see further drops in property values and general hardships.
However, these programs to address the issues faced by delinquent homeowners, job seekers who are trying to stay afloat with their mortgage payments, and those who have seen a severe drop in the property value associated with their home are hoped to help homeowners who are in a situation where default is avoidable or can be easily corrected. Again, these programs implemented by various state housing agencies offer an alternative route to foreclosure prevention but, again, may not be available to all homeowners in need. For this reason, homeowners can contact their servicer or state housing agency to inquire about these assistance plans which may go beyond traditional modifications to prevent foreclosure.