Homeowners who are still pursuing a home loan modification have usually been more concerned about either acquiring or proceeding through the trial modification period of popular programs like HAMP or even proprietary modification plans, but there have been issues that numerous homeowners have faced, and even current rating systems that have currently been made available from the Treasury Department are also taking into account just how servicers process these trial programs. Reports that were released in the early part of June, which showed data earlier this year from March to April indicated that there was a decrease in the number of active trial modifications being reported by the major institutions participating in the federal modification plan.
The question that many homeowners have though is how can they successfully acquire a home loan modification and efficiently move through the modification process, particularly if their servicer happens to be one who may have a poor rating in terms of homeowners who are seeing swift transitions from trial to permanent modifications. Obviously, homeowners are seeing different results no matter what servicer they happen to be with, and even within certain modification efforts by specific financial institutions, homeowners are seeing different degrees of success in terms of foreclosure prevention.
Some homeowners are moving promptly from a trial modification to a permanent modification after meeting three months of trial payments, but there are homeowners who have been stuck in limbo, meaning they are continually in a trial modification but are not being offered a permanent modification status on their home loan. Yet, advice has come from officials as to how homeowners may see more success when it comes to handling a trial modification and moving forward in the modification process, but this has not been taken advantage of by every homeowner.
The federal modification initiative has made housing counselors available to homeowners who meet certain qualifications and, by and large, there have been numerous men and women who are able to talk with a counselor and get the assistance they need to help them not only understand the modification process but organize themselves in such a way that they may stand a better chance at not only qualifying but moving through the transitional phases in a smooth manner. Understandably, the housing counseling assistance does not guarantee that a homeowner will qualify for a trial modification nor does it translate to a homeowner being able to meet their trial modification payments, but when homeowners are able to communicate more efficiently with their servicer and file their paperwork in a timely and proper manner this can reduce the difficulties which have arisen for many over the past months.
While the HOPE Hotline is one of the main resources that homeowners have used, as these counselors are usually reputable and approved to help homeowners specifically with pursuing a home loan modification, homeowners do need to remember that there are fraudulent organizations that still exist who hope to take advantage of distressed homeowners and may advertise themselves as housing counselors or experts in the home loan modification process. As always, homeowners can contact their servicer to ask questions or get assistance, but the HOPE Hotline is another resource which consumers can use, as there are some reputable counselors across the nation that can guide homeowners through this difficult process, but again, there are some dangers lurking for men and women in the form of scams, so caution needs to be taken if a homeowner chooses to do their own research and find a housing counselor to help.