Homeowners who are still looking for foreclosure prevention opportunities through your home loan modification plans, particularly those offered through the Making Home Affordable Program, and mortgage assistance from state-direct plans like the Hardest Hit Fund have had the opportunity to find more affordability in their mortgage payment or avoid the loss of their home when making their payment is simply too difficult for their present financial situation. Yet, programs like the Hardest Hit Fund do differ from foreclosure prevention modifications that many homeowners have sought out over the past months, despite the fact they both have the same ultimate goal.
Obviously, the Making Home Affordable Program has worked with homeowners to find affordability in their monthly mortgage payment through either interest rate reductions or mortgage term extensions, and in some cases there have even been principal reductions over time. However, this program has had its fair share of trouble as there are some financial institutions being blamed for the lackluster performance that has been seen throughout the past year. While there are homeowners who have benefited from reduced monthly payments on their home loan through a modification program, the initial number of homeowners that was thought to qualify and be helped by this program has not been met and will unlikely be reached within the program’s lifetime.
Luckily, reports have indicated that private home modifications have also been beneficial to homeowners as these servicer-direct plans have also offered these lower payments on home loans for homeowners who qualify. Yet, state mortgage assistance plans like the HHF have not necessarily always offered a reduction in a homeowners mortgage interest rate, term extensions, or general lower mortgage payments, but the foreclosure prevention efforts used through these plans have offered plans like 0% interest loans or grants-like options that can be used to help homeowners avoid the loss of their homes.
While these state mortgage assistance plans differ from one area to another, they have either helped unemployed homeowners by offering them a loan that will make their payments for a set period of time and if a homeowner meets qualifications and remains in their home for a set period of time, this loan may be discharged and the homeowner could owe nothing but have avoided the loss of their home. Also, reinstatement programs are hoped to help homeowners who have fallen behind on their mortgage as these assistance initiatives will provide funds to meet the difference on a homeowner’s mortgage obligation so that they can pay off missed payments that may be causing current financial distress. Obviously, these programs are aimed at homeowners who may be unemployed or who suffered financial setbacks due to cutbacks at their place of employment, but there are also some initiatives that may lower a homeowner’s principal if they’re in an underwater mortgage situation.
Both modifications and the HHF have been implemented as a way to slow widespread foreclosures that are not only causing distress for numerous homeowners but are creating a backlog of empty homes simply sitting empty across the nation. However, the Making Home Affordable Program and the HHF can offer various options for troubled homeowners but, for those seeking Hardest Hit Fund Aid, they must live in a state chosen for the program before these plans outside of the Making Home Affordable initiative may be offered.