As California is one of the more particularly hard-hit states in terms of housing troubles, unemployment, and general homeowner distress, there have been reports by the Treasury Department that recent increases were seen in the federal home loan mortgage modification assistance program made available to California homeowners between July and August, which is information viewed in a positive light by many officials who are seeing not only continued efforts made by major financial institutions to help homeowners but assistance available in these states that have homeowners who are continuing to struggle in larger numbers than in other areas of the nation.
According to these reports made available here in October, the active trial modifications that were in place between July and August in California increased from 25,954 to 26,533. Furthermore, the number of permanent modifications in California made available from HAMP increased from 164,051 to 168,639. Understandably, these increases in permanent modifications are what many homeowners want to see, especially those who are entering into the modification program, as past troubles which have arisen in the lives of homeowners who are distressed financially have not always lead to a smooth process when it comes to getting mortgage payment assistance.
However, homeowners do need to remember that states like California have alternative options available when it comes to helping homeowners with their home on payment, as federal modification plans can benefit some by offering more affordable payment arrangements, but there are certain programs that can address issues like negative equity or unemployment that homeowners may be able to use to their advantage. While HAMP has underwater refinancing programs and unemployment assistance plans, the Keep Your Home California offers similar payment assistance arrangements for homeowners as well, which can be a helpful alternative if a modification is unavailable for a homeowner in need.
It should also be remembered that the success of a homeowner in a modification program will depend on a variety of factors, some of which fall to the homeowner to make sure that they have in order, as submitting proper paperwork in a timely fashion, offering evidence of hardship that has led to a need for financial assistance, and homeowners making sure that they can meet these modified mortgage payment plans in the case of the federal assistance program are all areas where homeowners must make sure that they are ready if they wish to use these assistance plans to their advantage.
While both state and federal assistance options are still in place, homeowners may need to talk with professionals like housing counselors or representatives from their mortgage servicer to see which option will be best for their financial needs, as California does have multiple opportunities for homeowners to avoid foreclosure and find more affordability but, depending on the homeowner’s situation, not all of these plans will be helpful or available.