Mortgage servicers who have been working with homeowners in the Making Home Affordable Program have seen positive results in terms of a growth in the number of permanent modifications that we have seen on a month-to-month basis according to Treasury Department reports but there are still issues that homeowners face in areas where improvement is needed and understanding these problems has been helpful for some homeowners who may be new to the modification process. Obviously, the Making Home Affordable initiative is not the only opportunity that homeowners have to avoid foreclosure but it has been used by many of the major mortgage servicers in our nation like Bank of America, Citigroup, Wells Fargo, and J.P. Morgan Chase, among others, as a way to either reduce homeowner payments or offer other forms of aid that may be suitable to a homeowner’s needs.
However, Treasury Department ratings have been released regarding the quarterly performance of these major banks and we have seen some financial institutions stay in areas where a great deal of improvement is needed, while others are moving into a position where they are deemed to be more efficient in their home loan modification programs than before. Yet, looking at some of these areas where problems have arisen has better prepared homeowners when it comes to dealing with their servicer as they know what type of issues may have hindered homeowners in the past when it comes to getting a permanent modification.
There are housing counseling agencies and assistance resources that can help homeowners better communicate with their bank and make their way through the modification program in many cases, but homeowners should be aware that problems like calculation errors related to a homeowner’s income and servicers not following MHA guidelines when it comes to processing foreclosures efficiently have been a few of the main problems homeowners face.
Understandably, communication errors, lost paperwork, and these miscalculations are issues that can delay mortgage assistance and, as a result, the Treasury Department has been careful to point out where a particular servicer needs to improve in the hopes that more homeowners who are currently falling into areas of delinquency will have a more effective home loan modification process when they apply and make their way through this assistance program. Homeowners are not guaranteed aid from the Making Home Affordable Program but it’s obvious that officials want the most accurate determination made from a homeowner’s paperwork so that those who can be helped and qualify will get the aid they need.
As of late, some homeowners are turning to options like forbearance plans or alternative mortgage assistance programs when federal assistance is either unavailable or unhelpful, but as the federal modification program is not only one of the primary ways that homeowners seek to reduce their mortgage payments and save their home, it has been a guideline for many mortgage servicers when it comes to offering their own modification plans and it’s hope that if more efficiency is seen in the federal program in the future these alternative plans and programs will be able to help a larger number of homeowners as well.