The most recent Treasury Department report that has tracked FHA-insured mortgages has shown some positive results in the federal home loan modification program, as Making Home Affordable activity within this particular section of homeowners has seen increases for both trial and permanent modifications that have been started. Understandably, homeowners with a variety of mortgages have been looking to the Making Home Affordable Program, but not all have been successful when it comes to getting a modification as there are those who do not understand exactly how a modification can help with high mortgage payments and may not understand the application process fully, which can lead to confusion or problems with a servicer.
However, homeowners do have resources at their disposal, like housing counseling agencies made available from resources like the FHA or other agencies associated with the Making Home Affordable Program, but homeowners do need to be aware of the fact that these modification programs are not always a guarantee. Yet, FHA-insured mortgages did see an increase between June and July in terms of the number of modification plans that have been offered to homeowners at various stages of modification process.
It was reported in June that the number of FHA-HAMP trial modifications that had been started stood at 5,376, but this number increased in July to 5,721. Also, the number of permanent modifications for FHA homeowners increased from 3,762 to 4,072 between June and July, which is obviously beneficial for homeowners who are pursuing these particular type of loss prevention plans. However, homeowners do need to realize that addressing mortgage payment issues in a timely manner will be necessary so that if there are any problems that arise homeowners may be able to correct these mistakes or pursue other assistance plans without doing a great deal of damage their financial life.
Yet, modifications can still be helpful as many of these programs allow homeowners either an interest rate reduction, term extensions on their current mortgage, or some homeowners may be able to get a principal forbearance option that could potentially help when it comes to on their payments but are now in a position where they can afford their home loan obligation. While the FHA-HAMP opportunity is just one aspects of the federal Making Home Affordable initiative, homeowners with these FHA-insured homes who are having trouble with their payments should be aware that this plan is still available and, as we have seen from these Treasury Department reports releases here in September, is still seeing success for some homeowners.