Recent data has shown that private home loan modifications saw an increase for the month of July and there were also federal home loan modification increases reported in the month of July as well, which may be beneficial news for homeowners who are still looking for a way to find more affordability and on their mortgage payment. Obviously, there have been some indications that federal modifications have been outpaced by these private modification initiatives, and in the month of July it was reported that around 56,000 of these proprietary home loan modifications were made to homeowners in need, which was an increase from June.
What homeowners may not understand though is that there could still be problems that have to be overcome when a mortgage modification is offered through either federal or private modification assistance plan as there are still men and women suffering from problems related to their income and ability to repay mortgage debt obligations even when one of these modified payment plans is in place. Homeowners may have heard that redefaulting is still an issue for some, but there are homeowners who are also seeing improvement in this area as there are reports that indicate delinquencies have dropped in some cases. However, missed payments remain a problem for some homeowners who may have already been offered a modification.
With problems also continuing in the job market, as it was recently reported that no new jobs were created in August and unemployment remains at 9.1%, more homeowners are seeing continued struggles in their financial lives which lead them to seek out these debt assistance programs, but in some cases it has been obvious that a federal home loan modification is difficult to come by for some. It’s because of these troubles that homeowners have had that many turn to private modification programs, but there are still issues that may prevent homeowners from taking advantage of a modification program directly from their servicer since there have been some indications that improvement is still needed in this area for many of the top financial institutions working to help homeowners.
Yet, numerous homeowners are still aware of the fact that various states offer assistance through state initiatives like the Hardest Hit Fund and the Emergency Homeowners’ Loan Program, so these options may be worth exploring as a modification through either a federal or private plan will not always be a guarantee for homeowners in need nor will they always be affordable for a homeowner suffering from financial setbacks. As unemployment continues to be one of the main factors that lead homeowners to seek out these modifications, homeowners are being prompted to explore multiple mortgage payment assistance options so that they may be able to find a plan that works best for them and avoid foreclosure if programs like modifications are unhelpful.