Home Loan Modification Payments May Offer Affordability But Homeowners Urged To Follow Up After Agreement Is Signed

Over the past months there have been homeowners who were successful at receiving a home loan modification which lowered their monthly mortgage payment and allowed them to prevent foreclosure when financial problems were present and they were simply unable to meet their original home loan payment agreement terms. Yet, there have still been problems which have arisen for homeowners even after a loan modification has been signed, and because these issues that have been recently covered over the past weeks, homeowners are still being urged to follow up with their servicer after their modification agreement is signed and they start making these modified home loan payments.

It’s been no secret that homeowners have had problems when it comes to getting a federal home loan modification as some servicers have required these men and women to repeatedly send paperwork, submit letters of hardship, or meet other qualifications, like going beyond the traditional trial modification phase time limit where they are unsure of whether their trial modification will be made permanent. Yet, with factors like unemployment still being felt by homeowners across the nation, there are those who have not been successful when it comes to acquiring a modification or keeping their home loan modification payment current.

There are those who have been successful though, when it comes to getting one of these modified mortgages but there are various reports that homeowners still face hardship after they have been granted a modification by their servicer, and this goes beyond a simple inability that a homeowner may face when it comes to meeting their mortgage requirement. Homeowners have reportedly defaulted after a home loan modification is offered and, when this is the case, alternatives must be explored or a homeowner may have to face foreclosure if they are simply not in a financial position to benefit from a modified mortgage payment.

Yet, there are those who are receiving home loan modifications that are able to pay their mortgage after this program is enacted, but some troubles have arisen in the form of servicers either not honoring the modification agreement or even pursuing foreclosure despite having this modified home loan plan in place. While this varies from one servicer to another, homeowners are being prompted to follow up with their bank after they have been given a home loan modification agreement and begin making these payments due to the fact that there have been some errors in documentation or other aspects of the modification agreement which can be corrected in the majority of cases.

Simply put, homeowners are being cautioned here in early June to make sure that they are on the same page as their servicer as, once again, simple clerical errors could lead to a homeowner having to continually fight for a modification even when an agreement is offered. In many cases, this has been an instance where the bank has not documented the modification agreement and may have a homeowner registered still as delinquent or as making payments below their minimum requirement, but again, careful attention and contact with a homeowner’s bank after a modification may help clear up problems that homeowners continue to face.