Applying for a home loan modification can be difficult as procedures homeowners must follow have lead to troubles that have prevented many from either finding an easy route to a trial or permanent modification, or in some cases, homeowners have been denied assistance altogether and have had to reenter the program to go through the process once more. Obviously, the blame of these difficulties has fallen on the shoulders of both homeowners and servicers, as there are complications which have arisen that can be traced back to both sides of the modification equation, but there are some ways that homeowners can help reduce the number of stumbling blocks which may be in their path.
Homeowners who are in need of modification assistance may be able to consult resources, like housing counselors, as help from the Making Home Affordable website or HUD can point homeowners in the direction of reputable housing counseling assistance that can either find affordability in their monthly income to meet mortgage payment costs or some housing counselors can simply aid homeowners in understanding and proceeding into the modification process.
There are also resources online and articles that can help homeowners who are applying for a modification, as one complaint that servicers have had against homeowners is their failure to document their hardship, which is one requirement of a home loan modification. However, resources like Bankrate.com have information on modification programs and steps in the process of acquiring homeowner assistance, like writing a hardship letter.
Documentation has been a big issue for many homeowners as they say banks have either lost their paperwork repeatedly or have improperly processed paperwork which may have led to the denial of some homeowners being given entrance into the modification program. Yet, homeowners must show that they are meeting qualifications set forth by the Modification Program, and proving that financial hardship, potential default, or that factors like an adjustable rate mortgage may be the cause of their problem when it comes to making their mortgage payment.
While there are some officials who feel that servicers need to do more to assist homeowners, there are some suggestions that servicers need to begin reaching out more to homeowners and government officials have called on changes in the modification program that would allow for financial institutions who improperly implement these programs to face a loss of incentives. Obviously, the home loan modification plan has not been perfect and both homeowners and servicers have made mistakes which have led to more trying circumstances, but there are still many individuals in need of foreclosure prevention assistance, and servicers do still have various options open for those in need.
Again, speaking with a housing counselor, directly with one’s servicer, preparing paperwork that is necessary to qualify for modification, and simply meeting required payments which may be offered through a modification plan are a few of the steps that homeowners must take, but again, there have been difficulties which have arisen. However, addressing mortgage payment problems early and seeking out assistance through either counselors or a servicer may help homeowners find a less troublesome road than if they wait until their financial situation has become too dire for these loss mitigation efforts to help.