Homeowners in major metropolitan areas have continued to see results similar to servicer-specific results when it comes to the Making Home Affordable Program in terms of permanent modifications, but there are still issues that homeowners in certain areas are attempting to overcome, despite the fact that these permanent modifications have seen continual improvements over the past months. Obviously, homeowners do still have opportunities from these modification plans to either get rate reductions, term extensions, or some are even offered mortgage principal forbearance opportunities that may allow for the calculation of their modified mortgage payment to be even more affordable if certain conditions make it more problematic for homeowners to take advantage of these assistance plans.
Yet, errors have still been seen when it comes to not only mortgages servicers calculating the mortgage payment on a modified home loan but there are homeowners who may fail to properly submit documentation. Understandably, major cities are not the only areas where homeowners are looking for assistance nor are they always areas where mistakes are made, but when we look at certain cities that are in states that have been particularly hard hit by the economy, it can give homeowners some hope to see these permanent modifications being made available still.
However, homeowners in these areas like Florida, California, Arizona, and Nevada, just to name a few, are not only in a position where the Making Home Affordable Program is available but they may be able to use state programs to help with mortgage payments if they do experience these issues that some homeowners have had to face. If a servicer makes an error, homeowners will likely be in a position where they can contest the decision or even appeal the denial in some cases, which could occur with the assistance of a housing counselor, but in instances where homeowners simply do not qualify or incorrectly file their paperwork, more problems could arise and delays may be seen.
This does not mean that homeowners in these cities that have been particularly hard hit by the housing troubles should automatically turn to state programs or give up their pursuit of a federal home loan modification program if they face troubles, but we have seen homeowners facing similar issues that have hindered them from a modification as problems remain in the program and with servicers in general, and this has been the case since the inception of the program. Homeowners in major cities may also be struggling with negative equity, which could require further assistance from federal modification plans, but in order for homeowners to get the assistance they seek in a timely manner, servicers and officials still stress that payment issues be addressed early so that, with the help of housing counselors or by simply working closely with a representative from a homeowner’s bank, so solutions may be found and continued improvements in the area of permanent modifications and some extension programs will be able to be used to the advantage of some homeowners.