Homeowners who are facing delinquency, as of June, were reportedly to be on the decline as information from the Department of the Treasury and Department of Housing and Urban Development indicated that mortgage delinquencies for subprime borrowers and seriously delinquent borrowers who were in the prime category decreased, which is obviously a positive bit of information for the housing market and the general overall economy. Housing has been weighing down various areas of our nation’s economic recovery, but factors like unemployment have also weighed heavily into homeowners being in a position where they cannot meet their monthly mortgage payment.
Despite the fact that delinquencies are down, there are still some who have a more pessimistic view of the housing market and homeowners who are finding themselves in a position where meeting their home loan payment may still be problematic. Obviously, there have been mixed reports over the past months as to where we are in terms of recovery in housing and the job market, but homeowners who are facing delinquency on their home or who are already delinquent have been seeing a variety of programs implemented as a way to offer them assistance.
The most common option homeowners have comes from home loan modifications, but there are those who differ on whether federal modifications or proprietary home loan modifications are the best route for certain homeowners. There are some homeowners who are also finding debt relief simply through the Home Affordable Foreclosure Alternatives program as a short sales are also being used by financial institutions to move homeowners from homes which they cannot afford and potentially finding new buyers so that these homes will not sit empty on the housing market.
When it comes to delinquencies, job creation is what many feel must come and needs to occur at a faster rate, since homeowners who are in a position where they cannot afford their mortgage due to being underemployed or in a home where one of the earners is unemployed have typically been those who are finding delinquency more likely. Yet, even for homeowners who are unemployed, initiatives like the Hardest Hit Fund and the Emergency Homeowners’ Loan Program have been set in place and are currently ongoing and are working to find foreclosure prevention solutions for homeowners in need.
This data from the Obama Housing Scorecard does paint a positive picture for those who are following homeowner delinquencies but there is definitely a great deal of improvement that still needs to come. However, homeowners who are currently in a delinquent situation may be able to take comfort in the fact that there are programs still available working to address their issues, and in many cases, delinquent homeowners are still seeing positive results from these programs despite that fact that there have been problems with have arisen to cause a difficult road to foreclosure prevention for some homeowners.