Home Loan Modification Program Assistance For Homeowners–Current Problems Being Faced And Possible Solutions For More Success

The federal Making Home Affordable modification program has had its fair share of negative reviews, but homeowners still turn to their servicer and the federal HAMP initiative for foreclosure prevention and affordability options when financial distress has weighed down their ability to make their home loan payment as it currently stands. The housing market does not seem to be improving and unemployment has begun to creep up once again despite April seeing decent job increases, as May posted a lackluster number of employment opportunities that were made available.

What matters most to homeowners at the present time though, is simply the ability to stay in their home as varieties of federal and state home loan assistance plans are currently in place or in the works, which could help more of men and women keep their home despite having personal financial setbacks or trouble related to their property. Yet the problems that are still being faced must be addressed and, as a result, there have been some proposed measures that have been put in place to help homeowners find more success through HAMP and will hopefully provide more aid in the coming months.

Communication and confusion issues that have occurred between homeowners and servicers have been addressed as this is one of the main complaints that homeowners often have, and hopefully a new rule that will establish that a homeowner be offered a single contact with a representative from their servicer will be able to streamline the application process or work out any problems that a homeowner may face in a timely manner. There are also options that the Treasury Department has made available for homeowners who feel that they were unjustly denied a modification, and they may be able to have their case reviewed to see if perhaps they did indeed qualify for mortgage assistance under the federal modification initiative.

Sadly though, many of the problems that homeowners still have here in June are those that homeowners had last year and at the inception of the program, despite the fact that the modification plan has seen increases in the number of homeowners who have been helped. While the number of permanent modifications from both HAMP and proprietary modification plans have reportedly increasing each month, but with high levels of joblessness and continued decreases in home values, many feel that the modification program has either gotten to a point where drastic changes may need to occur or another assistance program may need to be offered since there are still numerous men and women facing the loss of their home due to foreclosure.