Traditional home loan modifications from the Making Home Affordable Program have called for some homeowners to seek assistance when pursuing a permanent modification as there have been difficulties related to these pursuits which have caused homeowners to either not qualify for the foreclosure prevention efforts they need and gain a lower monthly mortgage payment. While there have been efforts in various states which may help homeowners who are pursuing mortgage assistance and, recently, New York has proposed legal representation for homeowners in a distressed situation, outside help for troubled homeowners is available from various sources.
There have been homeowners who have simply turned to housing counselors as a way to find the guidance that they need within the home loan modification program. Obviously, there have been issues of confusion, loss documents, or miscommunication between a homeowner and servicers that have led to difficulties and the denial of a home loan modification, which had many homeowners of the opinion that preventable foreclosures have been missed in some cases.
Essentially, homeowners who turned to a reputable housing counselor may get either assistance in their personal financial lives or guidance within the Making Home Affordable Program, both of which could help prevent foreclosure. Some housing counselors have been able to offer homeowners financial assistance that can help them better budget their income so that they will avoid missing home loan payments or put themselves in a better position to get out of debt and avoid financial distress.
Yet, there are also representatives from housing counseling agencies that will help usher a homeowner through a home loan modification program, which is no guarantee that a homeowner will be offered either a trial or permanent modification plan, but there are indications that when guidance is present, homeowners may stand a higher likelihood of receiving the assistance that is vital to prevent them from losing their home.
Housing counselors may be available from resources like the Department of Housing and Urban Development or the Making Affordable Program as there are some counselors who may have specific training or can offer more in-depth assistance to homeowners who are pursuing a federal modification program or who are experiencing financial distress due to cutbacks at their job or unemployment. Obviously, there have been financial institutions who have reported that homeowners that were denied home loan modification assistance were not offered these foreclosure prevention plans because of mistakes on their part, but of course homeowners disagree and state that the fault falls on the side of many servicers.
However, assistance opportunities for homeowners seeking a home loan modification may be found through these housing counseling agencies and, as a result, could increase the success that a homeowner has when seeking foreclosure prevention. Homeowners are cautioned to research housing counselors to find a reputable agency, but housing counselors may also offer alternative options that homeowners could use to either avoid the loss of their home or transition from their home without doing damage to their credit if financial distress has created a situation where a homeowner simply can no longer afford their mortgage.