Homeowners who are attempting to find foreclosure prevention solutions through various home loan assistance programs have the opportunity from their servicer to qualify for a modification program or other Making Home Affordable assistance plan before foreclosure has begun, according to guidelines which are supposed to be followed by financial institutions who are working within HAMP. Home loan modifications have been in the news as of late due to the fact that there are outcries for the termination of the program, but homeowners have been concerned that despite a difficult road that must be traveled when seeking a home loan modification, these plans are their only option for saving their home.
Yet, one of the reasons that many individuals have called for the termination of the Making Home Affordable Program is due to the fact that modifications seem to be unsuccessful for homeowners who seek assistance through this federal initiative. According to rules set forth within HAMP guidelines, services are not to go forward on a foreclosure until homeowners have been reviewed to see whether a home loan modification or other foreclosure prevention plan would be helpful for their situation.
Ideally, homeowners who may face foreclosure would be reviewed by their servicer to see if they qualify for programs like traditional modifications, second lien modification plans, or even the Unemployment Program could help homeowners find more affordability in their mortgage and, as a result, these individuals may avoid the loss of their home through a foreclosure. Yet, homeowners have reported that while they were in the Making Home Affordable review process, foreclosure documents had been delivered to their home and this obviously has created a great deal of concern as homeowners feel that no matter what becomes of their modification, their servicer seems willing and able to foreclose on the property.
This is been one of the main problems that has been reported from the Making Home Affordable Program, meaning homeowners have decided that servicers seem to be unwilling to adhere to federal modification guidelines and, as a result, few homeowners have had an easy task when it comes to finding the foreclosure prevention aid they need. While it has to be mentioned that home loan modifications have increased over the past months and servicers are also implementing in-house home loan modification programs that have helped a greater number of individuals, there are still complaints that homeowners are simply being denied modifications for seemingly no reason at all and, as a result, the lackluster performance that has been seen within the modification program warrants the repeal of this foreclosure prevention initiative.
However, homeowners who are facing the loss of their home or fear that they may begin missing mortgage payments should have some security in that, again, servicers are required to review homeowners for his modification programs before they formally foreclose on a property. Yet, many advisers have suggested that homeowners take preventative measures to avoid the loss of their home as consulting reputable housing counseling organizations or simply talking directly with one’s mortgage servicer when financial troubles may arise could prevent difficulties from becoming problematic to the point where homeowners may have few options available.