Over the past months we have seen some workers borrow money from their 401(k), in the form of a 401(k) loan, for various purposes and, in some instances there have been homeowners who have used funds from their retirement as a way to apply money towards their mortgage principal at the time of refinancing as a way to apply cash to their principal balance, which may allow them to reduce their costs even further and potentially put them on a faster track to mortgage debt relief. Some financial professionals, such as Clark Howard, have even gone so far as to make the rare statement of urging homeowners, who can benefit to do so, to use funding from their 401(k) to participate in a cash-in refinance, but of course this comes with a caveat as homeowners do need to be sure that they are on a financial ground that will allow them to not only repay the funds into their retirement account but also benefit from this particular type of refinancing opportunity.

Homeowners who have successfully used a 401(k) loan to refinance with a cash-in option are those who, in the majority of cases, can affordably repay the money that will have to be returned to their 401(k), and of course they have been those who have qualified for a more affordable rate, and have obviously done a great deal of good when it comes to paying down their mortgage principal. Since rates on home loans, like the average 30-year fixed rate mortgage or the 15-year fixed rate home loan, still offer incredibly low interest rates at the present time, with the 30-year rate remaining around 4%, successful homeowners who have used a 401(k) loan to apply cash towards their principal at the time of refinancing have typically been able to get not only an affordable rate but potentially lower overall costs as well.

Some homeowners have made the decision to shorten their mortgage term, meaning they may have opted for a shorter home loan at the time they refinanced, and this coupled with applying money towards their mortgage principal has also helped some cut costs drastically in terms of the overall money they will pay on their home when all is said and done.

Yet, homeowners do need to realize that the costs associated with refinancing can be expensive, repaying a 401(k) loan will be necessary so that such drawbacks like defaulting on this loan and having the money received viewed as income, which then becomes taxable, are just a few of the factors that homeowners must consider if they wish to refinance at the present time. Understandably, low mortgage rates have been very attractive for homeowners who are in a position where they may potentially see a huge rate reduction, as well as lower costs, but homeowners are still being urged to consider all of the drawbacks that may arise when using retirement funds to apply cash towards their mortgage principal at the time of refinancing, look to see how beneficial refinancing will be for their situation, and whether all of the costs associated with cash-in refinancing can be met once they have completed the refinance on their current home.

Unemployment continues to be one of the main hinderances in the housing market and within the personal lives of many consumers as well, but there are still opportunities available through the federal Unemployment Program, which is part of the Treasury Department’s Home Affordable Modification initiative, and it may bring about solutions to the problems that some unemployed homeowners face here and November. Recent reports have shown that the number of forbearance plans that have been offered to homeowners, through the month of September, indicated that there were improvements in the number of offers made to homeowners and since unemployment has remained relatively unchanged over the past few months, remaining around 9%, these opportunities for unemployment mortgage assistance may be beneficial for homeowners currently in need.

The number of Unemployment Program forbearance plans that were started between July and August increased from 13,993 to 14,996, with forbearance plans that require homeowners to make no payment improving to 2,772, with forbearance opportunities that may require a reduced payment increasing to 12,224, which was up from the previous month of 11,364. These numbers by the Treasury Department track data through August 2011 and is the most recent information we have on these plans, but homeowners who are unemployed and struggling to make their mortgage payment do need to be aware that even here in November some homeowners are still receiving assistance from this particular opportunity.

Obviously, homeowners are not guaranteed help through this particular plan but there are opportunities available for those who are still suffering from unemployment to avoid foreclosure, bankruptcy, or financial hardships that may result from having no income and other factors like long-term unemployment. Not all homeowners are in a position where they can meet even a reduced payment on their mortgage, and this is where these forbearance plans have been beneficial as homeowners will be able to receive 12 months’ worth of forbearance if they meet these federal qualifications, but of course some homeowners are benefiting from state-specific programs as well.

While it will depend on the particular state in which a homeowner lives, some homeowners who are unemployed are getting payment assistance through certain programs, while others may be able to take advantage of dischargeable loans available in certain states that are not associated with the past program known as the Emergency Homeowners Loan Program. Obviously, each state housing agency will differ in terms of how long this assistance is available, what homeowners may qualify, and homeowners do need to remember that their mortgage servicer will have to be participating in these plans that have been implemented by the Hardest Hit Fund, but officials are still prompting homeowners to seek what may be available in their area as a help for the unemployed in terms of their mortgage payment is still available, but homeowners may also need to go beyond housing payment assistance and look to creditors or counseling organizations to help them find solutions to other debts in their lives so that these mortgage assistance plans may be more affordable if a reduced payment is still required.

The federal mortgage modification program was hoped to help over 1 million homeowners, with some estimations being around 2 or 3 million homeowners, but reports released here in November, which track data through September of 2011, indicated that there were only 720,612 permanent modifications that were currently active, which is obviously far fewer modifications than many officials had hoped we would see by this time at the program’s inception. However, we have seen that private mortgage assistance plans are outpacing the federal modification program, but there are some concerns that private modifications, while they may be greater in number, are not necessarily helping a substantial amount of homeowners in terms of lasting mortgage assistance.

Data that was recently released indicates that there were over 4 million private home loan modifications that have been offered to homeowners since 2007 but, there is some concern as we have seen problems related to homeowners falling into default once again even after these proprietary modifications are offered. The Hope Now organization states that 80% of homeowners who have received proprietary modifications, after six months, are still performing well and there has been a decline in delinquencies from 2010, but there are still millions of homeowners who are delinquent on these proprietary plans as well.

However, this is where arguments have both risen in favor of proprietary modifications and against these plans as, once again, from the third quarter of 2010 to the third quarter of this year there have been some improvements in areas such as delinquency, foreclosure starts, and even sales that were reported, but this does not mean that homeowners are going to be guaranteed any type of success with a proprietary modification versus a federal home loan modification plan. In fact, there are still instances where homeowners are falling behind on their modified mortgage payment no matter what type of home loan modification assistance is offered, as both federal and private modification programs have seen their problems.

Yet, the homeowners who are in a position where a modification may help, as lower payments on home loans will obviously go a long way for many, homeowners are still being urged to make sure that they speak with their mortgage servicer to inquire about what opportunities may be available, as not all financial institutions charged with servicing these mortgages are going to offer the same types of mortgage assistance plans. Furthermore, homeowners may benefit from various types of counseling assistance as housing counseling agencies may be able to help homeowners explore opportunities available to them, understand what will be required of them, and there are also some homeowners who are looking at counseling for financial areas outside of their mortgage as credit card debt or other personal obligations could hinder homeowners from meeting even a modified home loan mortgage payment and, as a result, may be one reason that continued financial distress is in place in the lives of some of these homeowners.

Homeowners who are looking for specific help from the FHA Federal Home Loan Mortgage case and program may find that this particular form of HAMP assistance is beneficial for their situation as, obviously, reduced payments can be greatly helpful when certain forms of financial distress or problems in the lives of homeowners may have arisen as a result of financial setbacks, unemployment, or health-related issues, just to name a few causes. Yet, homeowners who are in a position where an FHA modification plan may be helpful are still able to benefit from this plan as trial modifications that were offered in this particular program and starts on permanent modifications increased between August and September according to the most recent Treasury Department reports.

The home loan modification plan has been seen as helpful or a lackluster program, despite the fact that homeowners are still seeing results, some benefits and potential foreclosure prevention as a result of this plan, but there are those who feel that more homeowners do need to be helped. Yet, those who are specifically in a situation where an FHA home loan is in place, there are continued improvements being seen, but as to whether officials feel that more could be done to help, it often comes down to a particular mortgage servicer’s performance.

However, between August and September, the FHA’s trial modification programs that have been started increased from 6,148 to 6,468, with the FHA-HAMP plans increasing 4,254 to 4,671. Again, there are those who argue that as long as these improvements are being seen, homeowners are getting the assistance they need, but of course some individuals still fall into a situation where foreclosure may be the result of their efforts to acquire one of these modifications, some homeowners have had to file bankruptcy, while others have had to turn to alternative plans as a way to get the aid they needed on their home loan payment.

Since the modification program is not perfect, homeowners do understand that it will require a great deal of effort on their part to qualify for these plans, in terms of the application process, but it does need to be remembered that homeowners have help when it comes to making their way through this particular initiative, as both the FHA modification plan and modifications offered by many major financial institutions are all going to be in a position where housing counseling assistance help them with these pursuits.

FHA homeowners are not guaranteed a modification and, despite the fact that a reduced payment has been offered to a wide range of homeowners, this does not mean that they will always be beneficial in terms of preventing foreclosure as some homeowners have defaulted even after being offered a modification be it from the FHA’s plan or from major mortgage servicers. Yet, when homeowners address their problems early, properly adhere to application procedures, and potentially even seek out help that will assist them in better managing their finances even during financially troubling times, more benefits may be gained from these modification plans and homeowners could potentially avoid the loss of their home in a result.

Homeowners who have faced foreclosure and feel that a review may have been in their favor or are questioning whether their bank properly adhered to foreclosure practices when specifically looking at their case have seen that the Office of the Comptroller of the Currency has recently released information regarding foreclosure reviews in cases where homeowners have had trouble dealing with their servicer or have faced foreclosure that may have been the result of an error.

This could lead to some benefits seen by homeowners if a financial problem did arise as a result of errors and mistakes made by their servicer, there could be compensation given to the homeowner as there are those who can request a review which may benefit these men and women who have seen problems resulting from the foreclosure practices of their specific mortgage servicer. While there were some financial institutions that reportedly mailed letters to homeowners who may be able to request a review of their case, it does need to be remembered that not all homeowners are necessarily going to be in a position where they can have their case reviewed nor will this review process always guarantee that a homeowner’s foreclosure was unjust or caused a financial situation where distress arose.

Obviously, when the robo-signing scandal was first reported on and became a hot topic many began calling for changes in the foreclosure process as financial institutions may have simply been rushing these foreclosures through without properly reviewing potential assistance options or foreclosure prevention aid that might have been available for men and women who were indeed facing problems in terms of their mortgage payment. Many major financial institutions do participate in modification plans be they from private programs or the federal initiative, but there have not always been success stories out of these modification efforts and, as a result, homeowners who did see that foreclosures may not have been processed fairly or properly were even more distraught when foreclosure prevention assistance was not offered.

While changes to programs like the federal modification initiative and resources like housing counselors that are currently in place hope to help more homeowners become informed and avoid the problems related to errors, the Office of the Comptroller of the Currency has made resources available at www.independentforeclosurereview.com in the hopes that homeowners who were in a position where their foreclosure may have been questionable or the result of error can potentially find compensation in some form that may benefit them when the loss of their home due to foreclosure was processed improperly.

Homeowners with Wells Fargo who had been looking for ways to lower their mortgage payments through the federal home loan modification program but, as a result of financial problems, have fallen into delinquency are growing smaller in number as a recent Treasury Department reports indicate that homeowner delinquency for Wells Fargo within HAMP have fallen as of September 2011 report. Obviously, because homeowners are seeing decreases in this area of delinquency does not mean that there are those who aren’t still struggling with missed payments and there are also homeowners who will still likely fall into an area of delinquency as personal finance problems still remain present in the lives of many homeowners.

Yet, the number of homeowners who were delinquent between August and September within the federal modification program specifically for Wells Fargo decreased from 126,035 to 123,501. Homeowners are still seeing improvements in the modification program despite the fact that there are those who feel more needs to be done in the final year that this program is offered if there are going to be more homeowners helped by any substantial increase as some feel the program could potentially help many more homeowners than have already been aided but this would require action by the Treasury Department and mortgage servicers as well.

Wells Fargo has seen improvements in the modification program specifically as increases in permanent modifications have been reported in the most recent data we have, but homeowners who are looking to avoid delinquency do need to remember that modifications are not perfect nor are they always the only option that will be available to a homeowner in need. While it has been repeated exhaustively over the past months, some homeowners are still unaware that major servicers like Wells Fargo do participate in proprietary plans and state-specific programs that can help homeowners who do not qualify for a modification or may need special mortgage payment assistance that goes beyond a simple payment reduction plan.

Resources available from Wells Fargo in the form of representatives and housing counselors can give a wide range of information to homeowners who wish to explore multiple plans like modifications or state-specific programs in their area, but as always, homeowners who are in a position where they have not fallen into delinquency may be able to find more success if they address their mortgage payment difficulties before delinquency becomes a problem. While missing payments is something that homeowners have seen a rise in their financial lives during the past few years, homeowners may be able to take advantage of assistance before they start missing payments and potentially to do damage in their financial life.

Again though, homeowners who do qualify for aid will still be in a different position financially, meaning some may be able to stay afloat longer than others without these assistance options, but officials still suggest looking into assistance options sooner rather than later, especially if financial hardships may be long-term.

Obviously, homeowners over the past months have been refinancing in the hopes of acquiring a much lower rate as current interest rates are still remaining around 4%, on the 30-year fixed rate home loan option, with a 15-year and 20-year mortgage seeing rates slightly lower, but even homeowners who may not qualify for these optimal rates feel that they may still land in an area that is substantially lower than what they have and, as a result, more affordable payments or lower overall home loan costs may be gained. Yet, the use of refinancing to acquire some form of debt relief on a home loan is nothing new, but with rates at their current lows there are more homeowners who have considered refinancing, despite the fact that we have seen ups and downs in terms of refinancing activity throughout 2011, questioning whether homeowners are either unable or unwilling to refinance in some cases.

Yet, recent reports have also shed light on how successful homeowners are at refinancing or if they are seeing success in terms of helpfulness when it comes to refinancing their home loan in the hopes of getting a lower rate and finding relief in a timely manner for some. Recently, Freddie Mac reported that homeowners are still seeing decline in their interest rate when refinancing and there are some homeowners who are, at the time of refinancing, lowering their mortgage principal by applying cash towards their mortgage when they refinance their home loan.

It goes without saying, homeowners will want to get the most affordable rate they can and the most favorable conditions as such factors as closing costs, interest rates, or other fees have have come from refinancing, even if they have not planned to use cash-in options that can help these homeowners make further strides down the road to mortgage debt relief when they close on their refinance. Yet, homeowners are told to be aware of these costs, make sure they understand how their financial position will impact their ability to qualify for a more affordable rate, and whether they are going to be benefiting from refinancing when it comes to your paying off their debt sooner or simply getting a more affordable payment on their home loan as a result of a rate reduction.

While homeowners who can refinance, for costs, and apply money towards their principal are usually those who see a great deal of benefits from doing so, this again is not something that all homeowners are able to do and, despite the fact that many men and women hope to take advantage of low rates and costs that may be acquired from the current conditions being seen in the area of mortgage rates, again it will depend on the homeowner’s particular situation as to how beneficial refinancing will be and whether they stand to see lower costs as a result of refinancing.

Here in early November the Treasury Department released data that has followed the federal home loan modification program through the month of September and, for J.P. Morgan Chase homeowners who have been seeking a modification from the Making Home Affordable Program, there was an increase in the number of foreclosure starts and completions in some areas of Chase’s specific plan. While this does not mean that homeowners do not have foreclosure prevention options available, but it does paint a picture that for Chase, and other home loan servicers, the loss of a home through foreclosure and the need for foreclosure prevention are still issues that many face at the current time.

Yet, the categories that homeowners fall into within the making home affordable program will obviously lead to different results in terms of foreclosures as homeowners who were not accepted for a trial modification within the Making Home Affordable Program saw an increase in foreclosure starts from 70,452 to 72,140, while foreclosure completions rose from 21,303 to 23,361. This data tracks information through the months of July and August, but there were also some changes between July and August for homeowners whose from modification was canceled with J.P. Morgan Chase and foreclosure may have been the next step.

As an example, the number of foreclosure starts with J.P. Morgan Chase for this category of homeowners whose trial modification was canceled decreased from 23,879 to 23,236. Yet, foreclosure completions increased from 12,179 to 12,620, again between July and August for homeowners whose trial modification was canceled. Homeowners are urged to keep in mind that this data reflects not only current foreclosures and those that have been made in the past, but there are also some foreclosures that may have been removed from a servicer’s portfolio, these are simply numbers currently being released as part of the federal trial modification initiative.

While J.P. Morgan Chase does offer alternatives to federal modifications that may be helpful when it comes to keeping homeowners in their home, offering affordable monthly payments, or simply helping those who may be in a specific situation, like homeowners who are unemployed, there are no guarantees and some homeowners may indeed simply be in a position where they have to face the loss of their home, but there are officials like housing counselors available to help homeowners explore all options in a specific state or with their servicer that could help them keep their home and find more affordability.

Consulting housing counseling agencies or even representatives like those from the Department of Housing and Urban Development have been beneficial for some, but homeowners may have to look to their state’s housing agency for aid when it comes to keeping their home, as again not all homeowners have seen success in the Making Home Affordable program to an extent that has allowed him to avoid foreclosure in every case.

Homeowners who have been looking for assistance from HAMP are not always in a position where they have been able to avoid problems that have arisen and successfully take advantage of mortgage payment assistance, which have led some to file bankruptcy for a variety of reasons, particularly when a substantial amount of debt has become overwhelming. Yet, homeowners do still have foreclosure prevention and bankruptcy prevention assistance opportunities that can help them not only get a better grasp on their personal financial life but specific areas like their mortgage payment as well, but we have seen some increases in the area of bankruptcies in certain cases.

As an example, homeowners in the Home Affordable Modification Program who had their trial modification canceled saw an increase in the number of bankruptcies that were in progress, which was a cumulative total for major mortgage servicers between July and August, as this number increased by 89 homeowners. Yet, for homeowners who are not accepted for a trial modification within the federal program, these top 10 servicers totaled an increase of bankruptcies from 50,293 to 50,613.

The Treasury Department data which was released here in November may show that there are some increases being seen in the area of bankruptcies, but this does not mean that all homeowners are in a position where they must resign themselves to bankruptcy if mortgage payment assistance is not offered, nor are homeowners always in a position where foreclosures or foreclosure alternatives, like a short sale, will have to be used simply because a federal modification plan is unhelpful or unavailable.  Homeowners do have options for alternative modifications, forbearance plans, or state payment programs that can help through dischargeable loans or payment assistance, but again this will vary from one homeowner and servicer to another.

Some homeowners feel that, when a great deal of debt is in place, there are few options outside of bankruptcy that can save their home, but this is often debatable as not every situation a homeowner faces can only be helped by a modification.  Again, some homeowners are greatly benefiting from payment reduction plans, but there are alternatives that can be pursued by homeowner who is considering bankruptcy, despite the fact that they may not have been successful at acquiring a modification on their mortgage payment.

Again, homeowners are being urged to explore resources like housing counseling assistance to help those who are struggling financially, but when numerous debts are in place homeowners may benefit from simply talking with creditors outside of a mortgage servicer, or with financial professionals, in the hopes that affordable options may be made available on not only their home loan, but in other areas as well, so that these individuals can avoid extreme measures such as filing bankruptcy when their situation becomes difficult.

There have been increasing issues that have arisen for homeowners in the housing market when it comes to getting help with their mortgage payment, but when homeowners have a second mortgage in place there are indications that more troubles have arisen and, when negative equity is a problem or simple foreclosure alternatives are sought out there have been some homeowners who have seen problems arise as a result of having a second lien. Homeowners do have the opportunity to modify their second mortgage with the federal Second Lien Modification Program, and there are some cases where a mortgage servicer might have a proprietary plan in place or a state housing agency could have assistance options available in cases where a second mortgage is causing the problem, but homeowners do need to realize that there may be issues that have to be addressed so that they can avoid setbacks related to trouble on their second mortgage.

As an example, homeowners who have seen negative equity arise and are in a position where they want to participate in a short sale could get their primary mortgage lender to agree to this particular action, but the second lien holder will have to also allow the action to take place or else a homeowner may find themselves in a position where after selling their home they still owe on their second mortgage. While this is not a new problem, homeowners who are looking into second lien modifications need to realize that if they plan to pursue certain actions like a short sale or deed in lieu of foreclosure program, problems may come about when dealing with a second mortgage holder, and of course this could follow a homeowner even if they feel they have found a solution to their problem.

There have been some cases, which were reported on in October as part of the recent Treasury HAMP data that indicate some homeowners are not only getting second lien modifications on their mortgage but some are having the terms of their home loan modified to a point where their second mortgage is extinguished entirely. Again though, this could be up to a second lien servicer or investor as to how much aid the homeowner will receive, but homeowners who do have a second lien modification in place have found that, when it comes to affordability, this additional step in the modification process can be helpful in some instances.

Obviously, the problem becomes tricky when underwater home loans are in place, as there are those who may be unable to get assistance when it comes to dealing with their negative equity on a second lien. New underwater refinancing programs have been helpful for some homeowners but these plans are not always beneficial when it comes to helping homeowner find more affordability on their second lien, as many programs are aimed at the primary mortgage a homeowner happens to be struggling with, so there may still be some payment problems for homeowners with a second mortgage as well.

Currently, homeowners do see some second lien servicers offer assistance or will allow a short sale to occur, and of course there is the popular second lien modification plan to homeowners may still take advantage of with various mortgage servicers, but when homeowners are facing problems with their home loan, with a second lien in place specifically, officials often point out that it will be necessary to explore assistance plans that will include this particular home loan so that homeowners may still be in a position to benefit from reduced payments or other aid available for those struggling with their mortgage.