Mortgage Modification Loans Finally Begin to Make a Difference

It took some time for federally backed mortgage modification programs to actually make a difference, but nationally over 650,000 loans have been reworked through the governments Making Home Affordable Program. Prior modifications were stalled due to the home owner’s financial instability, or the lending banks stance on the delinquent loan. The numbers are now showing that programs like Making Home Affordable are starting to make a defined difference. The Treasury Department is reporting the following numbers for mortgages modified through their Making Home Affordable program.

These numbers are cumulative:

May: 50,130

June: 143,276

July: 253,673

August: 386,865

September: 487,081

October: 650,994

Home owners can find relief options that can take some of the pinch out of a bad loan without using the assistance of a federal mortgage modification program. Simply contacting your lender and requesting that your payment be adjusted to a principal only payment will reduce your monthly payment enough to ease some of the burden while you get back on your feet. Another option is to request that your interest rate be dropped. There may be some additional fees for resetting the loan at a lower interest rate, but ask that these fees be waived. In today’s market lenders are willing to wave some fees in an effort to keep the loan viable.

If your attempts to reduce your monthly payment fall short you may need to contact a HUD certified counselor to steer you through the process of seeking assistance through the Making Home Affordable program. Restructuring an existing loan requires much of the same documents that you had to provide for the original loan. Make certain that you are dealing with a certified HUD counselor. Many fraud attempts are made via the internet. To protect yourself make direct contact with counseling service. A legitimate counseling service will never ask for your personal information over the phone or internet.