Home Loan Modification Foreclosures Problems And Benefits–Can Homeowners Still Find Help Through HAMP?

Home loan modification efforts to prevent foreclosures have had mixed results over the past months as many of the nation’s top financial institutions participating in the Making Home Affordable Program have seen both homeowners greatly benefit from these modification plans or continue to suffer mortgage payment difficulties and eventually face foreclosure. While there have been homeowners who have avoided the loss of their home through these foreclosure prevention modifications, there are still those who feel the Making Home Affordable program is unhelpful and, as a result, there have been calls for the termination of this program.

Yet, many homeowners are still wondering whether help is available through HAMP as worries about homeowners not being able to sustain payments within a modified mortgage agreement leaves many questioning if this modification program is even beneficial for homeowners in need. The top servicers in the Making Home Affordable Program, like Bank of America, J.P. Morgan Chase, Wells Fargo, and Citigroup have all seen increases in the number of permanent modifications they have made throughout 2010, there is still concern that the performance of modification loans has been lackluster and could either use updating and improvements, or should simply be ended.

There are those who feel that modification efforts may be offering more assistance despite early problems as there are reports that show home loans which were modified in recent months are turning in better sustainability numbers three months after the modification was completed compared to loans which were made earlier in the modification program. Yet, there have been many homeowners who complained that even with a mortgage modification of their payment was simply too costly to meet and, in cases where underwater home loans were present, principal reductions were called for as homeowners were growing quite frustrated paying more on homes and it was actually worth.

While there are still homeowners who all are redefaulting after a modification is offered or having problems transitioning from a trial modification into a permanent home loan modification status, there are those who feel that more success is being seen in the modification program despite the fact that many critics feel the program has, generally, failed to reach a maximum number of homeowners that could have been aided and has been a waste of taxpayer money.

Obviously, there are homeowners and officials who would disagree with the sentiment as, again, there are individuals who have been aided through the modification efforts by not only servicers using the Making Home Affordable Program, but increases in proprietary home loan modifications are believed to have been somewhat of a result from the federal modification program efforts, as methods outlined in the federal program have been similar to private modifications.

There are no servicers or modification plans which are perfect, and as a result more homeowners may still find acquiring a modification to be difficult, but at the current time there are still these federal modification plans offered, despite decreases in the number of total modifications which have been made over the past months compared to foreclosures.