Making Home Affordable trial modifications for some homeowners have caused problems in the area of extended trial phases, meaning that homeowners are stuck in one of these from modifications for six months or longer, despite the fact that the federal Home Affordable Modification Program only requires that homeowners be in these plans and successfully complete their payments for 3 to 4 months. Obviously, there are some instances where homeowners may have had trouble paying their mortgage even with one of these trial plans in place, but there are still homeowners who have had trouble when it comes to transitioning from a trial to a permanent home loan modification with their servicer as recent reports from the Treasury state that from May to July of this year, homeowners in these trial lasting at least six months have remained around 23,000.
While homeowners may be able to voice their complaints with resources like the Homeowner’s HOPE Hotline or officials from the Making Home Affordable Program, it should be stressed that homeowners who are offered a trial modification must make sure they take the steps needed to ensure they can meet these payments so that they have an argument against being kept in one of these trial programs. Some homeowners find that they do have trouble when it comes to paying their home loan modification payment, and this could point to a need for further intervention in the lives of homeowners facing these problems, but this will depend on the situation as to what route a homeowner should take.
If a homeowner isn’t suffering from unemployment or sees the loss of their job after a modification is offered, this could qualify them for programs like the federal Unemployment Program, which may offer a forbearance option but homeowners need to understand that explaining their situation thoroughly and presenting evidence of hardship will be necessary as someone who is unemployed will not qualify for the Making Home Affordable Program, due to income requirements that many servicers have set in place.
Yet, these alternatives available through forbearance programs can help homeowners in need but if a homeowner or homeowners have an income and a modified payment is offered, cases where payments are still difficult to make could be the cause of personal financial problems that need to be addressed by the homeowner. In some instances, homeowners are simply in a position where they have allowed personal debts to grow to such an amount that they cannot meet all of their financial responsibilities, and this includes their mortgage payment.
If homeowners in these situations do get a modification, it may also be beneficial to go further and start cutting costs and spending in their financial life so that a mortgage payment modification will be helpful and, upon successfully completing the required number of trial payments, homeowners would have a better argument if they are being denied the opportunity to transition into a permanent modification plan. Again, homeowners may have some issues in relation to paying their modified mortgage payment, and this may result in a delay in the transition into a permanent modification plan, but if homeowners are still finding payments difficult to meet and run the risk of missing a modified mortgage payment, resources like credit counseling agencies or other financial advisers have been consulted by some in the past or homeowners may simply be in a position where they will have to budget in a way that allows them to get control over not only their mortgage payment debt but other personal debts as well.