Home loan modification plans from top lenders are still seeking homeowners who may be in need of financial assistance and more affordable payments, lower interest rates, and general foreclosure prevention aid on their home loan. Many of the nation’s top mortgage servicers have participated in not only the federal Home Affordable Modification Program, but have offered in-house modifications, and extension programs to lower monthly payments for homeowners in need.
Many modifications will use either interest rate reductions or mortgage term extensions to offer more affordability to homeowners and, according to the Making Home Affordable report, the average monthly savings that borrowers receive through permanent home loan modifications is around $527. Understandably, the homeowners who can save this much from month to month on their home loan are in a better position to avoid missing payments or facing foreclosure despite having difficulties in their personal financial life.
Yet, many servicers like Bank of America, Wells Fargo, Wachovia Mortgage, J.P. Morgan Chase, and Citigroup have all implemented extension programs to assist homeowners in particular situations. One example of these federal plans that may also offer lower monthly payments, or a home loan forbearance program, falls under the Home Affordable Unemployment Program.
However, homeowners who are searching for assistance outside of a federal modification plan may also be able to turn to servicer-direct assistance through in-house modifications or traditional home loan refinancing plans as well. While there are homeowners who are unable to acquire a federal modification, there may be more options available through proprietary modification assistance as servicers can set qualifications terms that may be more helpful for homeowners who face foreclosure.
Yet, as interest rates on home loans have remained relatively low, despite rising from their near record lows over the past months, homeowners may also lock in a longer-term on their mortgage which could offer not only a lower rate but a lower monthly mortgage payment as well. Many homeowners who have simply had trouble maintaining their home loan payment due to factors like unemployment or negative equity on their home are, in the majority of cases, looking for a more affordable payment each month so that they can keep their home and continue to look for stability in their financial life.
While these alternative plans, traditional modifications, or even extension programs have been greatly helpful for homeowners in the past, there are still many who feel that these programs could improve and help a greater number of men and women achieve more financial stability in their monthly mortgage payment. While there are still problems related to foreclosures being seen, homeowners who take quick action when financial troubles arise or are on the horizon may be in a better position to find a foreclosure prevention plan that works for them and, ultimately, save their home as a result.