The Making Home Affordable Program has reportedly had ups and downs over the past months as there have been assistance plans offered through this federal initiative to homeowners who are in need of help to prevent the loss of their home, but homeowners are also reportedly been denied mortgage assistance in many cases, which has led some to call for the termination of the modification program while others feel that simply retooling the program could greatly benefit homeowners for the remaining time during which the program is active.
The Making Home Affordable Program has been used by many major financial institutions throughout the nation and has offered permanent modifications to homeowners through the use of interest rate reductions and mortgage term extensions, but there are still issues that many feel must be addressed if continued housing troubles and unemployment difficulties are to plague homeowners to a point where they must find foreclosure prevention assistance or else lose their home.
According to the Wall Street Journal online, only one in four homeowners who have applied for a modification assistance plan have succeeded in actually getting their monthly payments reduced, and even for those who are offered a trial modification or even permanent home loan assistance, there are troubles that remain. Homeowners who are denied a modification are usually in the category where they did not submit the necessary paperwork, were considered to have an affordable home loan in relation to their income, or some homeowners were simply deemed to be in the danger of defaulting and were thus denied home loan assistance.
Obviously, homeowners have had trouble dealing with mortgage servicers as well, but there are reports that in-house home loan modifications directly from these financial institutions have been vastly outnumbering federal modifications in terms of the number of homeowners who have been helped through some form of modification effort and can be an alternative source of help for troubled homeowners. While there are hopes that changes in the modification program may bring about more success, there is frustration being felt by homeowners who feel that they are unjustly denied a modification because of issues like missing paperwork or being deemed to be in a financial position where they can afford their home loan.
Understandably, many homeowners turn to the federal modification program as a preventative measure when finances may become tight and they fear missing a mortgage payment, but again there are guidelines which may disqualify some from receiving a permanent modification, or even a trial, if they are in a financial position where the imminent threat of default is not present. However, there are some advisers that have suggested homeowners speak to housing or credit counselors if they are having financial difficulties when it comes to making their mortgage payment as these resources could help homeowners find ways to reduce spending, save money, and meet their mortgage payment without fear of defaulting or having to go through the home loan modification process only to be denied. Obviously, these counseling services should be researched before a homeowner chooses to work with a particular organization, but aside from an in-house modification or HAMP extension plan, simply budgeting one’s income in a more financially savvy way has helped homeowner meet their mortgage payments in many cases. Also, these counseling agencies are also able to help homeowners through the modification program in many cases as well, if a homeowner is simply unable to handle their mortgage payment at the present time.