As federal reports have begun rating servicers in terms of federal home loan modification plans, information was also recently released here in the month of June concerning alternative modifications that are available directly from in-house assistance plans by major financial institutions. While there have been some mixed results in the housing market, with foreclosures slowing down in some sectors, home prices decreasing in one area and remaining somewhat fair in another, there is one common thread through the housing market when it comes to homeowners and that is a continued need for foreclosure prevention thanks to factors like continued problems related to employment.
However, alternative home loan modifications, which has been one of the routes that numerous homeowners have taken, did see a decrease in the overall numbers that were reported, but this is still one of the more popular paths that a homeowner can take when they are either unsuccessful at a federal modification or are simply entering into the foreclosure prevention process initially. The number of these alternative modifications have been, for the most part, outnumbering federal permanent modifications, and at various times had outnumbered both trial and permanent Making Home Affordable modifications combined, but there are some slowdowns being seen in the modification area in general.
Yet, the most recent data that was tracked from these alternative plans has shown the results through the month of April, and despite the fact that a decrease was seen from March to April this year, there were still over 57,000 proprietary home loan modifications made by participating servicers for homeowners in need. Homeowners have usually turned to these in-house modifications due to the fact that they feel mortgage servicers may be more easily able to bring homeowners into an agreement within these proprietary modifications, rather than adhere to guidelines set forth by the federal modification plan, but these proprietary plans are not always perfect.
Homeowners do need to understand that there have been some instances where homeowners have defaulted even after a proprietary home loan modification was made, which is a problem that has been seen in the federal modification program too. These programs are, though, one area of hope that homeowners have when they struggled to qualify for a federal modification, as there are more servicers who are indeed able to tailor these in-house modification plans to meet a homeowner’s needs and potentially set them on a path to foreclosure prevention.
While modifications, both federal and proprietary, have been helpful to some, homeowners may also be able to explore unemployment assistance plans that are coming into effect this month and initiatives that have been in place since last year, which can address issues that may result in a homeowner defaulting even after a more affordable payment has been offered. In these cases, unemployment assistance plans or underwater mortgage aid can work in tandem with modifications and ultimately lead to a more successful foreclosure prevention plan for a particular homeowner.