It’s obvious that homeowners in various states have been pursuing home loan modification programs, but in some of the hardest hit areas like California, some homeowners may be struggling even more when it comes to finding an affordable option on their home loan payments due to factors like housing troubles and unemployment, which may have led to a higher than average need for homeowners to get this particular type of help. Yet, according to reports released here in September, which tracks home loan modification data from HAMP through the month of July, some major cities in California have seen an increase in the number of permanent modifications that have been made, and this could point to the fact that there are continuing opportunities available for foreclosure prevention assistance in this state.
As an example, in the June report of the Making Home Affordable Program indicated that for areas like Los Angeles, Long Beach, and Santa Anna there was a total of 46,860 permanent modifications that had been made through that month, but information through the month of July indicated that in these three cities permanent modifications rose to a total of 48,711. While there are similar pieces of information in other areas of California like San Francisco, Oakland, and San Diego, homeowners need to understand that it isn’t necessarily about their state, when it comes to getting an affordable mortgage payment through a home loan modification plan, but dealing with their servicer.
Obviously, some of the major mortgage servicers in the nation are participating in this particular plan and have been for quite some time, but there are still issues that may arise for homeowners who are facing foreclosure and are having trouble when it comes to dealing with their bank. While there have been some issues addressed by the Treasury Department, specifically in terms of performance of some of these major financial institutions, it needs to be understood that despite the fact some banks may have had incentives withheld, this does not necessarily mean that homeowners will see a drastic improvement overnight in the modification efforts of these banks.
Also, when it comes to modification assistance in California, it needs to be remembered that programs like the Keep Your Home California initiative is also in place to address the needs of homeowners in this state by offering plans that can address negative equity, delinquency, and unemployment, which a traditional modification may not be able to help in certain cases. While HAMP many able to offer opportunities like mortgage payment forbearance, homeowners need to realize that when working with their servicer there are some programs outside of the federal modification efforts as there have been some homeowners in California who have benefited from the state-specific plans or even in-house home loan modification efforts directly from their mortgage servicer.
It’s because of the fact that some homeowners are unaware of options beyond a traditional modification that many officials continue to urge these men and women to take advantage of free housing counseling assistance that may be available from the HOPE Hotline or simply contact their servicer early before financial problems become too difficult to address so that they can better explore all the options that are currently available in their state.