Making Home Affordable reports released here in the early parts of September have shown that permanent home loan modifications through the month of July have increased as homeowners continue to pursue trial and permanent mortgage assistance programs that may help them avoid foreclosure by allowing these men and women to find more affordability in their monthly mortgage payment. However, there are still some areas where homeowners may have trouble as there are certain servicers who have remained in a position where the Treasury Department feels that improvements need to be made so that more homeowners can be helped.
Yet, for those homeowners who are pursuing permanent modifications or even a trial modification plan, there has been some mixed data when it comes to reports released that track information through the month of July as the total number of active permanent modifications in June stood at 657,044 but this number increased to 675,447 in the month of July. However, this information that was released here in September also showed that between June and July and the total number of active trial modifications decreased from 115,515 to 106,078.
Some homeowners have had trouble in the past when it comes to transitioning from a trial modification to a permanent home loan modification plan, but there have also been some issues that homeowners face when it comes to getting a trial modification altogether. Many homeowners still make mention of the fact that common problems like unemployment or problems related to their health are some of the main causes behind their need for these foreclosure prevention plans, but there are also some individuals who may have simply bought more house than they could afford. However, these problems can be corrected in some cases through loss mitigation efforts, but there are problems that servicers report when it comes to homeowners either not qualifying for the program due to their mortgage payment being below 31% in relation to their income, but there are also some homeowners who have missed payments even when a trial plan was in place.
While issues like delinquency have also remained a problem for homeowners, there are some positive results being seen in certain areas, yet there are no questions over the fact that the housing market and consumers still have a long way to go when it comes to finding more stability in their home loan payments and putting themselves in a position where foreclosure is no longer a threat. Unemployment is still a big factor behind homeowners needing a modification, but it’s hoped that potential programs to aid homeowners and a jobs plan that may also be on the horizon will be able to address some of the issues that may be causing homeowners to fall into areas of delinquency and require mortgage payment assistance.
Homeowners are aware that no mortgage servicer has been perfect and there are some individuals who may need to consult with a housing counselor so that they can explore options that may go beyond federal modifications, but it does need to be remembered that homeowners should act as quickly as they can due to the fact that there are no guarantees when it comes to preventing foreclosure and despite the fact that there are a variety of foreclosure prevention plans available, there are still homeowners who are not finding the help they need when it comes to preventing the loss of their home.