Homeowners who are facing mortgage payment trouble here in August do still have options from the federal Making Home Affordable Program and recent data has shown that there are still increases being seen in the program overall despite the fact that the success of individual servicers may vary from one to another. Homeowners have a wide variety of options when it comes to modifying their home loan as some homeowners may simply need a short-term extension while others may require more careful attention through options that may reduce interest rates, offer mortgage principal forbearance or forgiveness, and of course some homeowners may still also need to extend the terms of their mortgage in order to get more affordability on their monthly mortgage payment.
Yet, troubles have been apparent when it comes to homeowners working their way through the federal modification initiatives, but homeowners do need to remember that there are not only these modification programs in place to help them but there are alternatives that may be beneficial for specific situations as well. However, there was an increase in the number of permanent home loan modification plans that were offered to homeowners between May and June, which according to a report released here in August from the Treasury Department, showed that there was an rise from 633,459 permanent modifications in May to 657,044 permanent modifications in June.
Homeowners are still in a position where factors like unemployment or simple payment reductions have led to them finding themselves in a situation where meeting their mortgage payment obligation is difficult and some have begun missing payments as a result. There are also issues like personal debts which may have gotten in the way of the ability of certain homeowners to make their mortgage payments as there are still men and women who are living at the very edge of their financial life, which means that if a small emergency were to arise they may simply not have enough cash or credit to address certain issues, like car repairs or health care needs, and when this occurs homeowners usually miss some form of debt payment obligation.
What this has equated to for some is missing a mortgage payment due to the fact that some consumers worry that if they do not have access to credit, like their credit cards, they are going to be in a much worse position than if they miss a mortgage payment. Obviously, missing a payment on any type of debt obligation is going to be incredibly problematic and lead to potential financial distress, so homeowners who are in this position are being advised at the current time to seek out official help to guide them through practices which may be beneficial in helping reduce their overall debt.
Understandably, not all homeowners are in a position to benefit from debt relief practices since their financial position may be too far gone, but homeowners who can stand to reduce debts in certain areas of their life may find that meeting payments like their home loan, even during these difficult times for many consumers, may be much easier and options like modifications could potentially be unnecessary.