Homeowner foreclosures have reportedly dropped in some areas across the nation, which may otherwise point to positive signs were it not for a certain factors in the housing market that could be causing a decrease in the number of foreclosures that are being seen that are not a result of homeowners finding themselves in a better financial position or being able to use options like modifications to prevent foreclosure. Indeed, many homeowners are still in a position where they are seeking out a home loan modification despite the fact that there are a wide variety of options that may be helpful for assisting homeowners with their foreclosure prevention pursuits.
Those homeowners who are in a position where they have not been foreclosed on and may be in a situation where their servicer simply has a great deal of foreclosures which need to be processed but thanks to effects still being seen from suspensions and foreclosures, the number of foreclosures in some areas may have decreased simply because the banks are backed up in their ability to process the paperwork. In fact, there are some banks that may be in a position where it will be more beneficial at the present time to work with homeowners through modifications or affordability efforts due to the fact that they are in a position where they even may not be able to process foreclosures they currently have pending and of course backlogs of properties on the housing market are causing issues as well.
While there are low home prices and relatively low interest rates that may be taken advantage of at the present time there are still numerous homes sitting empty waiting to be sold and as servicers continue to work through foreclosures it seems that they are only adding to the problem of properties that may potentially have no buyers in some areas. Yet, servicers are still working with homeowners to provide them with modification or foreclosure prevention plans that may be available from certain states, as continued high levels of unemployment, underemployment, or other factors in the lives of homeowners may have led financial distress in cases where homeowners may have otherwise been able to make their home loan payment without a problem.
Homeowners do need to be aware though that despite the fact that there are still modifications ongoing, this does not mean that homeowners will necessarily qualify or get the help they need as some homeowners are in a situation where they simply cannot benefit from these plans or may have to look at alternatives other than mortgage payment reduction modification options either from federal or proprietary programs. However, homeowners do have counseling agencies, new options within HAMP, and some servicers who are willing to help homeowners in a greater capacity to avoid further foreclosures at the present time.
Homeowners must keep in mind that the efforts put forth by their bank to assist them may differ, and there have been no perfect transitions for homeowners through assistance plans offered by their servicer, but homeowners do still have options to avoid foreclosure despite the fact that there are still numerous homes that are waiting to be repossessed and homeowners who may still face the potential loss of their home if help cannot be found.