Homeowners who are in a position where they are nearing the possibility of defaulting on their home loan or are in a position where they are either delinquent or may be in a position where they are attempting to avoid falling into delinquency have all seen programs developed over the past months and, more long-term programs like the Making Home Affordable initiative that was implemented in 2009, but there are still questions as to whether these various options for default prevention are helping homeowners when factors like long-term unemployment and negative equity are still a problem.
Obviously, many homeowners are being swept away by high levels of unemployment, which is one of the main reasons behind homeowners either missing payments or facing foreclosure, but there are officials who feel that the housing market itself needs attention due to the fact that there are large quantities of homes simply sitting empty in various areas across the country, which poses a problem for many banks. In situations where homeowners can no longer remain in their home there are many of these mortgage servicers who are pursuing short sell opportunities as a way to keep further homes out of the housing market in an environment where too few buyers are present to absorb the excess inventory.
However, there are still homeowners who are looking for ways to not simply transition from their home through the use of short sale programs, as an example, but there are numerous men and women who want to keep their home but are in a delinquent position and fear that they may default and face foreclosure or may be in a position where one of these foreclosure alternatives, like a short sale or deed in lieu of foreclosure plan is their only option. Because of this, questions have arisen as of late as to whether mortgage assistance plans are helping homeowners prevent missed payments or if there needs to be changes in programs to assist troubled homeowners.
Homeowners should be aware that there are opportunities for foreclosure prevention through programs like the Home Affordable Unemployment Program and state housing agencies are also using funding from the Hardest Hit Program to offer unemployment assistance in areas where homeowners are facing rates well above the national average when it comes to joblessness, and these plans have helped some homeowners when it comes to either offer forbearance or mortgage payment aid to avoid foreclosure.
Yet, we do still see problems related to homeowners facing foreclosure but there are also questions of whether more programs or changes to current plans would be helpful because of the fact that, once again, there are multiple options that range from modifications, forbearance periods, and private mortgage assistance plans that are currently available, but there have not always been success stories for homeowners pursue these programs. While there are no proposals to drastically overhaul current programs, advisers are currently telling homeowners to not simply explore one avenue of foreclosure prevention but rather to take action quickly when their mortgage payment becomes a problem and speak to a variety of resources that may range from representatives from a mortgage servicer to housing counselors, as these sources of aid could better help homeowners explore foreclosure prevention plans that may currently be available to help keep homeowners in their home.