There may be changes currently in the works that could benefit homeowners who are delinquent on their mortgage or suffering from financial distress as some of the top mortgage servicers in our nation who are being pursued by prosecutors regarding various foreclosure practices and questionable paperwork could reach a settlement where homeowners might benefit from further mortgage payment debt relief options. Currently, homeowners have a variety of foreclosure prevention assistance plans in place that may help their particular situation but not everyone has been able to benefit from these programs and, as a result, there are continued cries for further assistance programs to be made available.
Yet, some prosecutors have suggested that if banks will be given the opportunity to forgo various fines that may arise if liability on the part of these institutions is found in these cases if they will provide further assistance to help distressed homeowners find debt relief on their mortgage. Early outlines of these options that may be offered as an alternative to further fines and costs to these banks may require that a homeowner who has their mortgage owned by one of these banks in question be in a position of financial distress but have a mortgage obligation that requires at least 25% of their mortgage income.
The Making Home Affordable Program usually requires that homeowners have a mortgage payment that is 31% or more of their household income before they may qualify, but these are negotiations with certain banks may offer further aid to homeowners whose mortgage is specifically owned by that particular servicer, as there are many of the nation’s top financial institutions who may get grouped into this particular deal.
Homeowners do need to understand that this is in the early stages and there are not necessarily any specific programs which have arisen or will be guaranteed to arise from negotiations between these banks and various federal or state prosecutors, but there is hope on the part of some homeowners who were struggling or suffered from the problems that arose from servicers improperly handling paperwork and not reviewing a homeowner’s situation before foreclosing on the property.
It should be remembered that homeowners do have federal assistance options for modifications, private plans directly from their bank or assistance opportunities available directly from state housing agencies that may work well with their situation and help them avoid the loss of their homes even if delinquency or financial setbacks have arisen. None of these programs are guaranteed, but homeowners may be able to find debt relief on their home loan payments through one of these options and if these agreements with prosecutors do come through it may offer further assistance opportunities for homeowners who fear that foreclosure may be drawing near in their particular situation.