Recent changes to the Home Affordable Refinance Program are hoped to bring benefits to the homeowners who have been struggling with negative equity over the past months or even years, but there are some aspects of this plan, which are predicted to help less than 1 million homeowners, but may still prevent some from taking advantage of this particular refinancing opportunity and, as a result, questions have arisen as to why some homeowners may not benefit and how changes that are in place are truly helping homeowners that are in need. Understandably, there are well over 1 million homeowners who may be suffering from negative equity as there have been indications over the past few months that almost 25% of mortgages are deemed to be in a position where negative equity is in place, but changes in the federal underwater refinancing program have eliminated certain fees and the loan-to-value limit that may have been hindering some in the past, yet homeowners do need to remember that some aspects of this plan and changes may make them ineligible.

As an example, homeowners do still have a maximum limit for adjustable rate mortgages, but one of the more common issues that homeowners may need to look into when it comes to this program is whether they will benefit from refinancing. Homeowners are not guaranteed a lower rate when this program is available to them, as there are homeowners who may have fallen into an area of financial distress, missed payments, or may simply not have a good credit score where today’s low mortgage rates will be and option for them.

However, homeowners do still have options that may be available from their state housing agency, or directly from their mortgage servicer, that may help address negative equity despite the fact that such options as a principal reduction had not been widespread nor used by every mortgage servicer. The Home Affordable Refinance Program can be beneficial for homeowners and, as it does include more individuals than previously may have been able to benefit from this program, homeowners do need to keep in mind that they will not always qualify for this particular refinancing option, but again, homeowners do have opportunities to make their mortgage payments more affordable even when negative equity is in place, and if refinancing may not be an option.

The Principal Reduction Alternative plan and some principal forgiveness options that may be part of modification agreements could bring some benefits to homeowners in a negative equity position but of course homeowners who are hoping to take advantage of this underwater mortgage refinance program do need to keep in mind that the type of mortgage they have, their financial position and ability to refinance to a lower rate, and their servicer may all come into play as to whether this particular option for underwater mortgage refinancing will even be available or helpful for their specific mortgage situation.

Homeowners who are looking for assistance may find free help from housing counseling resources available from programs like the Homeowner’s HOPE Hotline as recent information has shown that numbers from August to September have remained strong in terms of the homeowners who are calling in and receiving free housing counseling assistance. Obviously, homeowners may be able to get information related to their mortgage servicer specifically, how the modification program works, or alternative plans that may be helpful for that particular situation as some homeowners are simply a loss of how they can benefit from plans that are currently in place.

Yet, this does not mean that homeowners are in a position to benefit from this counseling assistance as simply speaking with a counselor does not necessarily mean that a homeowner will be able to use the information they have to their advantage as there are those who simply do not qualify for current programs or, as we have seen in some cases, there are homeowners who continue to struggle with their mortgage payment even if mortgage assistance plans are offered. Payment reductions are obviously the main goal of many but different types of assistance that may make payments for homeowners, offer payment assistance to lower payment agreements, or even opportunities to acquire forbearance can be helpful in the short-term for some that may not always be beneficial.

Yet, as of September 2011, cumulative totals released by the Treasury Department showed that over 2.5 million homeowners had called for mortgage assistance from the Homeowners HOPE Hotline, with 1.2 million homeowners receiving free housing counseling assistance. Also, in September the number of homeowners receiving free counseling was reportedly at 31,509, and this type of aid could potentially help homeowners when it comes to better understanding their position and the opportunities specifically available to them.

Housing counseling has also been an area of hindrance for some homeowners as there are scams still in place, which is why many officials want homeowners to consult these reputable resources as not only has the HOPE Hotline been helpful but there are some homeowners who may have received assistance from the Department of Housing and Urban Development. However, homeowners do need to be aware of these scams that are out there as some may ask homeowners to take actions that could be contrary to what their servicer wants, may cause further financial distress, or again simply put homeowners in a worse position as some scams have gone so far as to ask homeowners to make payments directly to them.

In the end, counseling is in place to provide help through information, and then entities such as financial institutions or state housing agencies will be consulted and programs applied for through their assistance plans that are in place directly from these sources, rather than through a counseling agency.

Citigroup homeowners who were pursuing a federal home loan modification, in some situations, have fallen into foreclosure but according to the most recent Treasury Department reports that were released here in November more positive data has been seen. While foreclosure starts and completions are something that countless homeowners are attempting to avoid, it does need to be remembered that homeowners are still struggling in a variety of ways and, as a result, starts and completions in the foreclosure process have continued to edge up for many major financial institutions when it comes to homeowners who were unsuccessful at getting a modification.

Yet, there are still opportunities for Citigroup homeowners, and many others with a variety of servicers, to find the assistance they need, despite the fact that we have seen some increases in foreclosure starts, completions, or even homeowners filing for bankruptcy. However, Citigroup did see some potential positive movement, as foreclosure starts and completions did decrease for homeowners whose trial modification was canceled as the data given to us showing activity between July and August indicated that foreclosure starts with Citigroup decreased from 9,428 to 9,410, and completions during the same timeframe decreased from 2,047 to 2,043.

However, the number of foreclosures completed for homeowners who are not accepted for trial modification with Citigroup did increase from 7,184 to 7,397 between July and August 2011, but the number of foreclosure starts decreased from 7,025 to 6,955. Obviously though, homeowners in these specific categories within the modification program are not the only ones with Citigroup, or any other servicer, who are seeing foreclosures as a problem, as numerous homeowners who may not even qualify for a modification, may not apply for home modification plan, or who may pursue an alternative mortgage assistance program may also find themselves in a position where they face foreclosure as well.

Since foreclosures are predicted to rise in the coming months, it does need to be understood that homeowners may not be in a position to benefit from assistance plans, despite the fact that there are a wide range of programs that are currently in place, have been improved upon, and may potentially offer the benefits that homeowners need when it comes to avoiding the loss of their home. Yet, homeowners are still being urged to act quickly if financial problems arise as those with any servicer participating in a modification plan and do not necessarily have time to waste, in terms of attempting to stay afloat when financial problems have arisen, and in the past homeowners may have drained their savings or saw financial setbacks in other areas of their life as a result of attempting to pay their mortgage.

While the modification program is still in place to help homeowners and has become one of the primary resources that homeowners turn to, many officials feel that more needs to be done by way of helping homeowners for this initiative, and despite the fact that there are some servicers still seeing positive results and are being deemed by the Treasury Department to have an efficient program, homeowners do need to understand that they have to look at all aspects of foreclosure prevention, in terms of plans available, so they can make the best decision for their specific situation.

Wells Fargo homeowners who may be in a situation where financial distress is present and negative equity happens to be a problem have, in the past, turned to short sale and deed in lieu of foreclosure plans as a way to help them transition from their home when these problems are in place, and recently within the Home Affordable Foreclosure Alternatives program, Wells Fargo saw an increase in the agreements that were started and completed between August and September of 2011. Yet, homeowners do need to realize that a short sale on their home or surrendering their deed may not necessarily be best for their financial position, so it does help if homeowners do explore alternative assistance plans in some cases in spite of benefits that have been seen from these alternatives.

However, for those who have found that one of these foreclosure alternative plans will be best, Wells Fargo homeowners may benefit from these plans as, once again, the agreements started and completed did show improvement as starts increased from 7,760 to 8,476 and agreements completed increased from 4,225 to 4,798. Again though, homeowners do have options that may help them avoid seeking these alternative plans as there are also programs from Wells Fargo that can help homeowners who are even underwater as many who pursue a short sale will obviously be in a negative position but also unable to benefit from certain types of payment assistance.

Some homeowners have been able to take advantage of new rules set in place to allow for underwater refinancing, but in some instances a simple modification may work as well. Homeowners are often urged to look at state programs that may be in their area, as Wells Fargo can also help homeowners in this aspect but it does need to be remembered that homeowners will obviously differ in terms of their mortgage situation, financial problems, and potential solutions that will be beneficial.

While counselors may be able to help homeowners sort through these options, those who believe that a Home Affordable Foreclosure Alternatives plan will be the best as, again, there are some homeowners who may face the inevitable loss of their home through foreclosure even after pursuing foreclosure prevention options, and rather than file bankruptcy or lose their home to foreclosure, homeowners may benefit more in the long run by participating in these short sale opportunities.

They are not always optimal for homeowners, as short sales or deed in lieu of foreclosure plans can cause a decrease in a homeowner’s credit rating, it does need to be remembered that homeowners may be able to see more improvements if they can avoid financial setbacks that are the result of other debts that may be present and are suffering as a result of their mortgage payment difficulties. These foreclosure alternatives will not solve every problem but homeowners who are careful to consider their foreclosure prevention and alternative options may find that there are some benefits to be gained from the plans that are available from servicers like Wells Fargo when it comes to helping homeowners avoid further financial problems.

Bank of America foreclosure prevention assistance has come quite often through the federal modification program but homeowners who have either been denied modification assistance or had their trial modification canceled by Bank of America saw increases in the number of foreclosure starts and completions between July and August of 2011. This information on homeowners who are facing foreclosure was released here in November by the Treasury Department and has given some homeowners a better insight as to how those who are unsuccessful at a home loan modification plan are faring in terms of foreclosure.

Yet, homeowners do have alternative foreclosure prevention opportunities that may be more helpful but of course there are still increases being seen in the areas of starts and completions after homeowners have made their way through HAMP but found no success. As an example, foreclosure starts increased by over 1000 for homeowners whose trial modification was canceled between July and August, with almost 2000 foreclosure completions being reported during this timeframe as well.

Also, for homeowners who were not accepted for a trial modification initially, the number of foreclosure starts between July and August for Bank of America increased from 82,394 to 87,916. Foreclosure completions were reported by the Treasury Department to have increased from 32,094 to 37,143, but these numbers while they do continue to increase monthly for a variety of mortgage servicers do not indicate that homeowners who failed to acquire a permanent or even trial home loan modification have no other options. Bank of America does participate in not only proprietary modification plans but extension programs as well, which have been beneficial for some, but there are also homeowners with Bank of America who made be able to take advantage of specific plans like those from the Hardest Hit Fund, available in certain states.

Yet, for homeowners who do wish to avoid the loss of their home, rather than participate in a short sale or deed in lieu of foreclosure program as an example, many officials often point out that it will be necessary to address these financial problems early that may be preventing homeowners from paying their home loan on time as a certain situations may require programs outside of the modification that must be pursued by these Bank of America homeowners. Understandably though, there are no guarantees despite the fact that the servicers have made changes to their programs at the request of the Treasury Departments in hopes of meeting benchmarks, but homeowners do have multiple options available to them that may be beneficial and are worth exploring if foreclosure prevention is necessary for their situation.

Over the past months we have seen inquiries into homeowner unemployment modification plans, as there are those who are currently without a job that hope to take advantage of modification options that are currently in place but homeowners may be unaware of aspects of these programs that could make traditional modification plans that offer lower payments unavailable to homeowners who are unemployed. However, unemployment assistance is available for those who are currently looking for ways to avoid foreclosure and may want to take advantage of options that may offer a reduced or even no payment for a set time.

Yet, homeowners are still being made aware of the fact that traditional modifications like those from the Home Affordable Modification Program usually not open to homeowners who are unemployed as past problems that arose early in the modification program led to changes in qualifications that, when homeowners are relying on unemployment benefits as their only income, may disqualify some for this type of help. However, reduced payments and even forbearance options can be made available from the federal modification initiatives through extension programs, or there may be help specifically from a homeowner’s mortgage servicer when unemployment is a problem.

While reduced payments may not help some, there are those who can benefit from lower payment obligations or even the opportunity to forgo making payments for a set time yet there are some states that have also opened avenues for homeowners to take when unemployment is a problem. In some cases, homeowners may be able to take advantage of subsidies available from certain programs that will essentially make a homeowners mortgage payment for a set time or up to a set amount, but there are of course dischargeable loan programs that homeowners have seen in the past and, once again, these plans may be able to offer the help that homeowners need when unemployment is in place.

Obviously, it goes without saying that homeowners who are in a position where they have lost their job will hope that a reduced payment plan is available, it is to be understood that traditional routes like federal modifications are not always open to homeowners in need when unemployment is in place, but this by no means indicates that there are no opportunities for help available. Simply put, homeowners may have to explore options like forbearance plans, private mortgage assistance opportunities, or these state programs that are available in limited areas that may also address mortgage payment issues that arise as a result of joblessness.

While there are some federal programs that do indeed address these unemployment plans, homeowners may benefit from simply talking with their mortgage servicer or even a housing counselor made available from the federal modification initiative to see what can be done when unemployment is in place. Yet, homeowners are still being urged to make sure they consult with resources or begin the application process when one of these programs is available as soon as they can as unemployment for some individuals has been a long-term problem.

More homeowners may be helped through the Home Affordable Refinance Program in the coming weeks as recent changes that have been reported on may allow more underwater homeowners to qualify for this particular type of aid, in the hopes of taking advantage of low mortgage rates currently available that may help these underwater borrowers find more affordability on their monthly payments. However, when it comes to homeowners who are in a position where refinancing may be helpful for their situation, there are some officials and homeowners who want more to come from refinancing opportunities be they from HARP or other programs.

Obviously, homeowners are well aware of these underwater refinancing options, in most cases, but more are looking for principal reduction opportunities to be made available so that these homeowners can avoid paying a substantial amount more on their home than it’s worth. Yet, this issue is one that has been covered over the past few weeks and, when it comes to current changes that are still being proposed, there are some indications that officials want the Home Affordable Refinance Program to offer more help to homeowners as many are still struggling at the present time.

It’s no secret that home values have been decreasing over the past weeks and months, with some homes seeing decreases from years prior as there are those who are in a position where their home’s value has been substantially lower than their purchase price for years. Last year, and even earlier in some cases, we saw homeowners grow frustrated and begin strategically defaulting went negative equity was a problem, but when more affordable payments are offered there are officials who feel this can be beneficial when it comes to keeping homeowners in their property rather than walking away or attempting to short sell their home.

While there have been some who want assistance for refinancing to be extended to homeowners who are not simply in a negative equity situation, but may have a specific type of mortgage like those offered from Fannie Mae or Freddie Mac, it’s hoped that programs offering refinancing assistance or relief from certain fees and costs that come with refinancing, may be made available to a wider range of homeowners both in a good financial position in terms of their equity or in a negative equity situation as rates on home loans that are currently at substantial lows may greatly go towards helping homeowners avoid the loss of their home.

Understandably, changes that are forthcoming and have already been put in place as part of the Home Affordable Refinance Program may help homeowners who are facing problems when it comes to refinancing and even affordability issues on an underwater mortgage, but again, officials still want changes to be made in terms of refinancing for homeowners in general so that more may be able to get an affordable rate, potentially qualify for more affordability on their home, and hopefully avoid financial problems that may lead to delinquency or default.

Consumer debt has reportedly reached a level that may have been comparable to levels we saw before economic downturns began and consumers started struggling when it comes to areas like their job, income, and overall personal financial life. Due to the fact that we are seeing more consumers acquire debt, there are those who are looking for debt relief plans through common programs like debt consolidation loans as there are those who feel this particular plan of debt repayment will be best for their situation. Obviously, consumers in this category where debt has been increasing, which according to reports indicates that this debt increase was tracked as of September 2011, may be in a position to avoid a great deal of financial distress when consolidating multiple debts, but of course advisers often differ on the usefulness of debt consolidation and particularly how it can help in certain situations.

As an example, some consumers have used various types of debt consolidation options, be it credit cards that may offer transfers on balances or personal loans that are being used to consolidate debts, yet when it comes to using some form of debt consolidation, consumers are often advised to remember that this could lead to higher costs in the long run, despite the fact it may look like more affordability is being seen at the present time. However, there are also some indications that the amount of consumer debt that has been reported may have increased, some financial institutions are reporting positive numbers in the area of delinquency, despite the fact that there have been some that are also seeing consumers struggle to pay back what they owe.

Last month we saw information that indicated areas like personal loans did see increases in delinquency, but this does not mean that it was a universal problem with all lenders, as there are some consumers who have borrowed a debt consolidation loan, been able to group all of their debts into one area, and begin combating this particular obligation rather than fighting multiple debts that, obviously, will be costing them multiple charges in the area of interest as well.

A consumer will have to make a personal decision as to whether debt consolidation will be best for the situation, as this particular type of debt relief strategy is, once again, going to be costly for some, may not be available for others, and could generally be unhelpful when it comes to removing the debt from a consumer’s financial life. Those who do successfully use debt consolidation loans are usually in a position where they may pay more than they have to on a minimal monthly payment, which could offset some of the negative aspects of a consolidation loan in terms of paying on a higher principal amount.

Again though, consumers who are seeing increases in debt and feel consolidation may be right for their situation are being urged to make sure to calculate the costs for their particular financial position before proceeding as personal loans, balance transfers, or any general consolidation plan has benefitted consumers in the past, but will not always be helpful in every case where debt is present.

Many consumers are in a position where they are not as confident as financially at the present time as they feel they were in years past, but we recently saw that the number of jobs that were added in October, in terms of non-farm payrolls, brought about new employment opportunities and currently we are facing unemployment rate of 9%, which is down from 9.1%. Obviously, there are still those who feel a great deal must be done before employment is less of a problem, in terms of jobs being lost in various industries, there is hope that as we have seen some continued increases in the jobs being added, despite a slow recovery there are still movements in a positive direction.

Some sectors have seen problems when it comes to job creation, and of course this has led to some consumers finding themselves in a position where they are not as confident as they have been, even as early as last year, as we have also seen indications that some consumers may be hesitant to buy goods and services as a result of a lack of confidence. While there are those who feel that their finances may simply not last them in the current economy, particularly in cases where cutbacks have been seen in wages, there are those who feel that their job is not secure as it has been in the past, as again there are still industries that are losing jobs despite the fact that we are seeing some increases in job creation.

However, before the economy is in a position where benefits are being seen, in terms of individuals finding employment, consumers avoiding the loss of their home, default on debts, or other personal financial problems, and difficulties that have arisen in housing to start abating, there will have to be a great deal of change in terms of the unemployment rate, as the drop off from 9.1% to 9%, while it was a decrease, is not substantial enough to indicate that there are any major changes that could be taking place at the present time.

Obviously, consumers who are losing confidence about their finances are in a position where a job that may be the result of this lack of confidence, again where unemployment may be in place or insecurity about the longevity of a consumer’s employment opportunity. Yet, this has led some concerns over the coming holidays and consumer spending, as again there are some who feel that the lack of confidence that we have seen not only in terms of employment but personal finances could lead to a slow holiday season, but again these opinions are mixed and many say we will simply have to wait and see.

Yet, when it comes to confidence that consumers have, we have seen different opinions and situations, as some areas of the nation are recovering more in jobs and housing than others, but factors like holiday purchases may give us a better national indicator of how consumers feel, in terms of their ability to purchase, and as we see hiring already in place for the holiday season, this could at least lead to some employment opportunities for a short time for those who are struggling.

Individuals who are looking for an affordable personal health insurance plan will often find that, in various states, different insurance providers can offer a wide range of personal plans that could potentially help meet the needs of someone who is without an employer group health insurance policy in place, but questions remain over cost and coverage as these personal plans may be quite expensive for someone having to carry this financial burden alone. However, there have been reports released here in early November that, for someone with an individual health insurance policy, the monthly premium was about $200 a month, which will obviously be more or less depending on certain factors, but even in cases where this has been easily affordable questions over what may be covered under such a policy also remain in place.

Some have gone so far as to look into high deductible health insurance plans as these policies can come with an affordable rate as well, in terms of monthly premiums, but there are those who question if costs that may come from preventative care, prescriptions, or other routine medical requirements may be covered under certain policies, as it goes without saying that a low monthly premium could equate to less coverage in some cases. However, there are major insurance providers who have made options available that may offer different types of coverage through affordable policies, as no two individuals seeking out a personal health insurance plan may necessarily need the same coverage but obviously will likely be looking for affordability on the monthly payment they must meet.

Understandably, personal insurance is something that is not affordable for many men and women, particularly when cutbacks in their wages or unemployment are in place, and this is why such plans as a short-term health insurance policy is sought out as consumers hope to guard themselves against unforeseen costs that may arise if a medical emergency were to occur. Yet, what has made some of these issues more difficult is that employers, which in the past were always seen as a stable source of health insurance benefits, have also been cutting programs that provide health insurance to their workers or may cut back on coverage that some workers need, as getting an individual health insurance policy when a preexisting condition is in place, while not impossible, has been difficult for some.

Consumers do need to understand that there are options available for a variety of health insurance situations, but looking at these personal health insurance policies, short-term plans, or even a high deductible health insurance plan with a health savings account are all options that have been used throughout 2011 by not only individuals but there have been some employers to use certain plans, like a high deductible policy, and there are providers who do still offer coverage that may be quite comprehensive for basic needs these individuals have. What officials often point out will benefit someone seeking a personal health insurance plan is to simply compare offers across a variety of insurance providers, as again, coverage options will often vary, but still can be affordable, yet when it comes down to the personal needs of a particular individual, this is where these cost issues do come into play as, again, preexisting conditions or coverage for certain medical treatment may impact the bottom line of what monthly premium will be received.