Homeowner delinquency continues to be a problem for many as factors related to the income of homeowners and property values still continue to create a strain in the lives of these men and women and their ability to make the mortgage payment on time. While there have been some positive reports from the Making Home Affordable Program, homeowners are still seeking out delinquency payment assistance from their servicer as a way to avoid foreclosure until the point where they can find more stability in their income or home loan situation.
Yet, recent reports from the Treasury Department concerning homeowners who were delinquent on their mortgage, as tracked by data within HAMP, decreased by more than 10,000 between May and June, which some may see as a positive sign for the housing market in certain cases. However, according to many economists the overall picture of housing for the future remains quite grim as there are predictions that foreclosures and issues like negative equity will remain to be a problem throughout the rest of 2011.
It should be understood though, this does not mean that homeowners don’t have any opportunities when it comes to addressing their delinquency status, as is common knowledge that modifications are still in place to help homeowners address these issues. While reducing a homeowner’s mortgage payment, extending the term limits on a homeowner’s mortgage, or even reducing a homeowner’s interest rate are options used by major servicers to help homeowners find more affordable payment opportunities at the present time.
Yet, homeowners who have a servicer participating in certain state-specific programs like the Hardest Hit Fund may be able to take advantage of homeowner delinquency assistance programs that can help men and women who are behind on their mortgage payment become current. In some cases, these programs are helpful simply because they allow a homeowner who has fallen behind on their mortgage payments to make up the gap between what they owe and what they can pay, as there are some men and women who may have only had a brief period of financial distress but are now able to continue paying what they owe on their home but cannot meet the costs of the amount they owe for missed payments.
While delinquency may not be a problem that all homeowners are facing at the current time, as some are more concerned with issues like negative equity, it’s understandable that during these tough economic times homeowners have fallen behind on their mortgage payment obligation, but it’s hoped that as we continue to see decreases in homeowner delinquency data that it will point to a more positive outlook in the future. Understandably, homeowners are not always guaranteed assistance from these affordability plans, but with modifications and state-specific plans still available, homeowners do have more mortgage payment assistance programs currently available than in the past.