Homeowners with an FHA-insured mortgage may find themselves in a position where payments are difficult to meet, and this is the case with a variety of homeowners in different situations, in terms of not only their financial distress but their mortgage servicer. However data that we have seen released here in the month of October has indicated that the FHA’s modification program within the Making Home Affordable initiative saw increases in the number of homeowners who were offered help through this particular program.
The Treasury Department has indicated that the increase that we have most recently seen occurred between July and August as the number of trial modifications started as of July number 5,721, but this number increased to 6,148 in August. Furthermore, the permanent modifications within the FHA Modification program increased from 4,072 to 4,254 between July and August as well. Understandably, homeowners have been seeing mixed results when it comes to benefiting from these programs and because of this fact homeowners do need to make sure of what types of assistance may be available for their specific situation, as homeowners with an FHA home loan may not have the same types of payment assistance programs available as homeowners whose mortgage may be owned or guaranteed by another servicer.
However, homeowners are still in need when it comes to finding affordability on their mortgage because some are still seeing setbacks in their financial life due to factors like unemployment, which has been a long-term issue for some. Sadly, there have been homeowners who were able to easily meet their mortgage obligation but due to cutbacks or decreases in their salary, these homeowners are now in positions where they feel as if they are barely treading water it comes to needing financial obligations. Also, some of these homeowners are in a position where they can’t find an employment opportunity that offers them the income comparable to what they had once earned due to the industry changes that have been seen in our job market over the past few years.
For homeowners who hope in these foreclosure prevention programs, there are still opportunities available from federal and state initiatives, but some mortgage servicers also have private plans that had been beneficial as well, so homeowners do still have opportunities to avoid the loss of their home no matter if they are facing a difficult financial position. Homeowners are often urged to realize that these plans are not guaranteed and as a result if financial distress arises they will need to address these problems early so that they can establish contact with their servicer, apply for programs that may be available, and hopefully receive a beneficial assistance plan that will meet their financial needs.