Mortgage Foreclosures Reportedly Fall But Homeowners Are Still Seeking Foreclosure Prevention Plans Related To Financial Hardships

Yesterday it was reported that the foreclosure filings experienced yet another decline, which has been seen over the past months and there was also a decrease in the number of jobless claims from last week, but many homeowners are still suffering from factors like underemployment or unemployment and if these reports are not more closely observed, it would seem that there are improvements being seen in the economy and in the lives of numerous men and women. However, there are sadly some factors that may have gone unnoticed if readers did not look more closely at these reports, as unemployment still remains quite high and even the number of jobless claims, factoring in the decrease, is still above 400,000.

Also, there are those who mention that the decrease in foreclosures does not point to positive news in the housing industry as there are still indications that some of these decreases that are being seen in the number of foreclosures are the result of suspensions that were begun when the scandal broke about foreclosure documentation being signed without proper reviews. What this translate to though, is many homeowners are still suffering from mortgage payment troubles related to factors like unemployment as economic hardships which have been seen over the past years are still in place despite the fact that there are some areas of the economy which may be seeing improvement.

There are those who feel that any news related to decreases in jobless claims or a drop in foreclosures should be viewed in a positive light, but we must remember that May saw a very low number in terms of new jobs added to the economy and the unemployment rate still remains incredibly high as numerous men and women are still finding it difficult to find work. This all equates to a continued need for foreclosure prevention efforts that are ongoing, but there is some positive news in this arena as well, particularly concerning the federal Making Home Affordable Program.

Problems have been seen over the past months when it comes to dealing with servicers and many homeowners are frustrated and angered over the experience they had when attempting to avoid the loss of their home. Unemployment is usually one of the main reasons homeowners face foreclosure, but as there are not only ongoing modification plans but state initiatives that will help address unemployment specifically, it’s hoped that if a slowdown in recovery does occur or there are numerous foreclosures that are being delayed because of suspensions, changes may be seen in the latter part of 2011 in terms of mortgage assistance for unemployed men and women.

Again, traditional modifications are still in place and HAMP has been seeing continued increases in permanent modifications, despite complaints of servicer errors.  Yet, there are opportunities like the federal Unemployment Program, which can offer forbearance on home loan payments to homeowners without a job, as well as, various state initiatives and loan programs that offer mortgage payment aid for a set time are still being used by homeowners to this day, as unemployment and foreclosure remains an anchor on the financial lives of many.