For some homeowners who have been participating in the Making Home Affordable Program, success has not always come and, as a result, these individuals may have faced foreclosure due to the fact that they could not find an affordable payment plan on their home loan when financial problems have arisen. Yet, there is some positive news, despite mixed data, which has come from Treasury Department reports that show foreclosure starts and completions after homeowners have either been denied a trial modification or had there trial modification canceled have decreased in some areas.
However, there were not all positive results as it was reported for homeowners whose trial modification was canceled, the number of foreclosure starts decreased between April and May but the number of foreclosure completions increased from 42,196 in April to 44,941 in May. Yet, homeowners who were not accepted for a trial modification saw these overall totals decrease as the number of foreclosure starts between May and April decreased from 213,611 to 202,337 and foreclosure completions decreased from 93,855 to 91,149.
These total numbers of starts and completions have been tracked by the Treasury Department among some of the top financial institutions participating in the federal modification program, and despite the fact there were some decreases in the number of total foreclosure starts that have been seen over the life of the program, this does not mean that homeowners are still not facing problems when it comes to the loss of their home. Foreclosure is still a major issue among many homeowners and has been a drag on the housing market since many of these foreclosed properties have been simply sitting empty and causing property devaluation in other areas.
What homeowners need to remember is that there are these foreclosure prevention assistance plans still available even after they may have been unsuccessful at getting a HAMP modification program set in place for their situation. While many homeowners are aware of alternative modification plans made directly from servicers, it has been repeatedly mentioned over the past months that homeowners have options for specific situations that may offer affordability, like when unemployment is a factor, and there are some state plans that can address a wide variety of issues that range from unemployment to delinquency on a homeowner’s mortgage payments.
Since there are still homeowners falling into foreclosure, it requires the review of these options since some homeowners who have been struggling with their mortgage payment issues for a while may be well-versed in what opportunities are available but there are some new homeowners who have recently fallen into a position where meeting their mortgage payment is more difficult and they are unsure of what to do. Yet, resources like the HOPE Hotline can direct homeowners to the options that may be right for their situation and better explain to homeowners how they can go about receiving these assistance opportunities. As always though, homeowners can also speak directly with their servicer to find out what programs may be available or what private plans could potentially benefit homeowners who are looking for more affordable payments on their mortgage.