Home loan modification efforts that have brought foreclosure prevention plans to homeowners in need of some form of debt alleviation have been made available through both federal and in-house modification programs directly from mortgage servicers, but there are still issues that some homeowners face when it comes to getting assistance that is helpful for their particular financial position. Homeowners need to understand that federal and proprietary home loan modifications do to have their benefits and have helped some, but there are still obstacles that homeowners may face that need to be understood before this process begins.
According to data for February 2011, the total number of federal Making Home Affordable active permanent modifications stood at 557,076, while it was reported by the HOPE NOW network that proprietary home loan modifications numbered a little over 3.7 million. Obviously, there are still homeowners who are being offered this form of foreclosure prevention assistance either directly from financial institutions and federal modification program or with the use of these in-house modification plans, but there are still concerns that issues related to the sustainability of these programs have been a problem and homeowners are simply getting caught up in a difficult process that would eventually bring them to a point where they can afford their home loan.
As an example, many homeowners have cited that they have had trouble dealing with their bank and, in response to these problems, the Treasury Department has proposed a plan where servicers will have to provide a single point of contact for homeowners in order to cut down on any issues like lost paperwork miscalculations or other types of confusion that may lead to a homeowner being denied a home loan modification plan. However, there are still some homeowners who are very angry with their servicer and, as a result, feel that these financial institutions need to address issues that could be preventing the maximum number of homeowners from being helped, or in some instances, homeowners simply are of the mind that these banks are unwilling to help on a larger scale.
Yet, when it comes to the federal home loan modification program, some homeowners may be facing difficulties simply because they are not meeting the program’s guidelines. Homeowners who are being denied modifications, being asked to reapply, or attempting to contest home loan modification denials may be in a position where they are simply not meeting the federal guidelines that servicers must adhere to, but in-house modifications have also been an alternative that may be more helpful for homeowners and, again, has produced more permanent home loan modification programs.
While in-house modification plans may be more easily acquired by homeowners, thanks to the fact that servicers do not have to apply universal guidelines to all homeowners, there are still issues in this area concerning sustainability and the affordability of modification payments, as both homeowners in federal and proprietary modification plans are having trouble and defaulting even after these forms of aid are applied to their mortgage. Yet, homeowners are still being prompted to explore both federal and alternative modification plans that may be available from their servicer and even consult housing counseling assistance organizations, like those approved by HUD, for further guidance through the modification program and for advice when it comes to making the most of a home loan modification plan.