Numerous homeowners are still seeking foreclosure prevention programs from federal assistance plans that are being offered to address a variety of issues, and continued aid from these programs has been deemed necessary by many but there are those who oppose certain federal initiatives that are hoped to continue to provide help to homeowners facing financial trouble. Foreclosures have been a drastic problem in various areas of the housing market, as not only are homeowners finding it difficult to make their payments in some cases, but homes that are left sitting empty have created a great deal of strain in the housing market and, as a result, there have been programs implemented as a way to address these issues.
Luckily, foreclosure filings have gone down as a report from MarketWatch.com stated that, “Filings fell 27% in February from a year earlier,” which also meant that foreclosure filings were down 14% in February when compared to January of this year. While there are some who question the reasoning behind these foreclosure filing drops, as there are some advisers who believe improper foreclosure allegations and changes in the industry have made filing foreclosures more difficult for some servicers.
However, foreclosure prevention plans from the Making Home Affordable Program, the Hardest Hit Fund, and even proprietary home loan modifications which have been offered directly from financial institutions are all still in place to address foreclosure prevention needs that many homeowners require to prevent the loss of their home. Yet, there have been recent proposals from members of Congress to end numerous programs that are helping homeowners avoid the loss of their home, but are seen to be unsuccessful and draining taxpayer dollars.
The widely known Making Home Affordable Program is one of these initiatives that Congress has voted to repeal, which would essentially eliminate future modification options for homeowners from this plan, but there are reports that indicate these plans are unlikely to pass in the Senate and even if they do they would likely be vetoed when they reach the president’s desk. Yet, many feel that this congressional proposal to terminate these programs is simply attempting to shed light on the fact that many programs that have been in place to help homeowners prevent foreclosure need to be restructured so that more success can be seen.
Homeowners have had a great deal of trouble when it comes to qualifying for a federal modification program, but there are also issues concerning availability and affordability in proprietary modifications and underwater assistance plans, as well as, programs that are hoped to help unemployed homeowners. However, these plans are still available to help individuals that may be in need, facing financial distress that has prevented them from paying their mortgage, or as a way to help homeowners deal with issues like joblessness, all with the chief end of preventing homeowners from losing their home. Yet, these programs do still have their problems and, as a result, homeowners can either consult housing counselors, the HOPE Hotline, or speak directly with their servicer about current foreclosure prevention initiatives that may be beneficial for their particular situation.