Mortgage modifications for homeowners facing financial trouble are reportedly seeing more positive results in some areas as federal home loan modifications are reporting that factors like transitions from trials to permanent modifications and the timeframe taken to convert these modifications are reporting that homeowners are seeing a higher rate of conversion and a lower time to convert from one aspect of the modification program into another. Obviously, in the past homeowners have struggled to either acquire a trial modification but also homeowners had trouble when it came to moving from a trial modification to a permanent modification as some servicers kept these homeowners in the trial phase for much too long.
In some cases, if a homeowner were to miss payment during their trial modification phase this could delay the transition from a trial to a permanent modification, but there were some cases where homeowners were making their trial payments and not receiving a permanent home loan modification offered despite the fact that they have met these requirements. Also, some homeowners reported that they had there, modification canceled for seemingly no reason at all and of course there are continued problems between homeowners and servicers when it comes to communication.
The good news is that there have been changes made in the modification program that may have resulted and these positive numbers as homeowners are seeing the length in their trial modification drop to an average of only 3 1/2 months, according to HUD and the Treasury Department. However, the question that remains is whether homeowners are finding stability in these modification programs as there are still some issues related to homeowners facing mortgage payments and falling into an area where foreclosure could be likely after they have not successfully completed the home loan modification trial process.
Yet, even with a permanent home loan modification there are still homeowners who may find themselves in a financial situation where they miss payments even on these reduced mortgage obligations, which would obviously lead to the cancellation of their modification agreement and put them in a difficult position in their personal lives. In cases where a homeowner modification is cancelled homeowners may have to explore alternative options like in-house modification plans, but there are also state-specific options they can help homeowners if their servicer happens to be participating in programs like the Hardest Hit Fund.
Homeowners do need to keep in mind though that they should look at a variety of plans that could be beneficial for their situation and this may require consulting with a housing counselor or financial professional to see what option will be best for their particular home loan needs. However, as more homeowners are being converted from trial to permanent modifications and homeowners are seeing less trouble when it comes to staying in a permanent home loan modification agreement, it’s hoped that, despite imperfections in these plans, they will continue to work to the advantage of homeowners who are still suffering from financial hardships and are in need of foreclosure prevention aid on their home.