The total number of home loan modifications that have been made for 2011 have obviously increased but there are still questions as to whether these increases are enough to help the amount of homeowners who are struggling to make ends meet as homeowners are still delinquent on their mortgage payments in various areas while others are on the edge of falling behind on their mortgage payments. Understandably, there are a great deal of issues which have arisen this year for homeowners and throughout the life of the modification program, but as more homeowners continue to see modifications and officials pushing for more efforts to be made on the part of servicers to address issues like negative equity, homeowners have begun to wonder if these plans will continue to be a viable option if housing woes continue up until the program’s deadline which comes next year.
Yet, in January of 2011 the Treasury Department reported that there were a total of 539,493 active permanent modifications in place while this number increased in the month of May to 633,459. This may be seen in a positive light by some as there are servicers who are still continuing to make these permanent modifications available but there are still concerns related to the delinquencies that are being seen by homeowners who may be behind on their mortgage payment 60 days or more.
As an example, data from December stated that there were over 1.3 million homeowners who are delinquent on their mortgage while this number only decreased to 1,050,430 homeowners as of April of this year. Some might say that this too is a good sign as the early part of the year saw a decrease of a little over 340,000 homeowners who were no longer delinquent, but this does not mean that these homeowners found a solution to their financial difficulties as many have faced foreclosure on their home rather than getting the foreclosure prevention help that they need.
Understandably though, changes that have been made in the Making Home Affordable Program have been able to help some homeowners despite the fact that there are still imperfections being seen. Homeowners may now be in a position to only work with one single point of contact with their mortgage servicer, as confusion, lost paperwork, and repeated requests for documentation often frustrated homeowners and seemingly delayed the modification process for some. However, homeowners do need to remember that options available from housing counselors can help these men and women better explore options that may go beyond traditional home loan modification programs and could better fit their financial position.
There are no guarantees when it comes to getting a mortgage modification as to some homeowners may simply not qualify while others are already in a position where even a home loan modification may not help with their mortgage payment needs. However, homeowners who are falling into delinquency are being prompted to explore the modification program and other foreclosure prevention options as soon as possible since these permanent modifications are still being made available and are on the rise but again they are not a guarantee when it comes to helping homeowner prevent the loss of their home.