Home Loan Delinquency And Foreclosures For Troubled Homeowners–Are Programs That Offer Affordability Helping?

It’s common sense that homeowners who fall into delinquency on their mortgage often face the risk of foreclosure, and as a result, there have been numerous options available to troubled homeowners in the hopes of preventing the loss of their home. However, questions over whether plans to help homeowners avoid delinquency and foreclosure have actually helped are still in place as there are reports that were released in late June that stated that delinquent properties are still a major problem within the housing market, and this is evidenced by the fact that they have been making up a sizable amount of homes that were sold.

Obviously, there are homes simply sitting empty as a result of foreclosure that many banks are trying to sell, but there are homeowners who are delinquent on their home loan or facing inevitable foreclosure who may be trying to participate in a short sale program as well, as factors like unemployment and negative equity have necessitated that homeowners take these measures when foreclosure prevention efforts are helpful.

Yet, this is where the question comes in as to why are homeowners, in the face of all these foreclosure prevention programs, still facing the loss of their home and falling behind on their mortgage payments. It goes without saying that unemployment is still one of the driving factors behind missed payments and delinquency, but if modification programs from the federal initiative or proprietary plans were tailored to help a greater number of homeowners, it stands to reason that this may cut down on the number of delinquencies in foreclosures being seen.

The problem that some homeowners face though is that long-term unemployment has made even a reduced monthly mortgage payment impossible to pay, as homeowners who may be relying on unemployment benefits or have no income whatsoever can obviously not afford even a modification payment. However, this is where there have been plans implemented by various states to offer subsidies or loans to homeowners that will meet their mortgage payment obligation for a set time while they are unemployed.

Information about the newest loan program was made available recently, and as there are similar programs already in place for homeowners, it’s hoped that factors like unemployment that may be leading to the continued problem of delinquency will become less of an issue for homeowners, particularly those who can at least get the aid they need while looking for employment. Understandably, problems related to the job market and the ability of these homeowners to find employment still remain an issue, but it’s hoped that foreclosures for these homeowners who are troubled may be avoided with the use of programs that are already in place from these new unemployed foreclosure prevention initiatives.