There have been reports as of late that throughout 2011 there were some areas that sought foreclosure rate decreases, which when compared with a year ago, may have led to positive results in terms of homeowners who were able to avoid foreclosure, but questions have arisen among homeowners as to whether mortgage assistance programs are the cause of these positive reports or if some other reason may be the cause for some cities across the nation seeing decreases in this area of housing. There are some consumers who may be in a position where they are able to meet their mortgage payment after having a difficult time in their financial life, but there are also some problems which have arisen in relation to delays in the foreclosure process that may have attributed to this drop as well.
In the area of home loan assistance though, homeowners do have numerous options that are currently available which may be the reason that these foreclosures have begun to slow, but there are also areas of housing that may influence these numbers as well. Yet, when it comes to homeowners who are able to avoid the loss of their homes through certain programs, there are more opportunities that are currently available than in early 2010, as at that time most homeowners may have had a home loan modification as their only option to avoid the loss of their homes through foreclosure.
Now, thanks to programs like the Hardest Hit Fund, extension programs within the federal Making Home Affordable Program, and even changes to federal modification programs, homeowners have more opportunities to avoid the loss of their home, particularly when financial distress related to unemployment or negative equity may be in place. However, these programs cannot take all the credit as to why foreclosures have dropped as it’s not simply positive factors in the housing market and in the lives of homeowners that are the reason.
There are still banks that are having trouble when it comes to processing foreclosures and, as a result of delays, there have been indications that some foreclosures may be pushed to the end of 2011 or even into 2012. While this may be helpful for some homeowners who will not have to go through the foreclosure process at the present time and may allow them the opportunity to get back on their feet financially or make other living arrangements, these drops in foreclosures do not necessarily mean all is well in the housing market.
There may be some positive news from this information as there are some banks that may be attempting to help homeowners avoid the loss of their homes through more actions like modifications, forbearance options, or other loss mitigation efforts as the number of homeowners who are purchasing homes at the present time is quite low despite the fact that interest rates on mortgages remain quite affordable despite seeing a slight increase thanks to factors related to our debt ceiling problems. Yet, more banks may be prompted to help homeowners as a result of being in a position where they do not want homes simply sitting empty as a result of foreclosure, especially when there are few buyers to fill these properties.