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Default on Mortgages and Foreclosures

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By : Dywon Erick Dylon    99 or more times read
Defaulting on home mortgages is a problem for millions of homeowners throughout the nation leading to foreclosures. This is despite their efforts to find assistance for mortgage payments through the Making Home Affordable Modification Program.

There are several homeowners who are finding it difficult to honor their monthly mortgage payments and have approached federal loan modification program to reduce their monthly mortgage payments.

Yet, efforts to stabilize the housing market through attempts to prevent foreclosure properties and modify loans intended to make monthly payments affordable have produced mixed results in the recent months even as the leading lenders of the nation have offered loan modification services through various means.

However, increase in the number of defaulting mortgages has resulted in the requirement of offering more loan modification services and expansion of mortgage assistance programs. According to a Making Home Affordable Report of this September, 1,304,572 cases of homeowners delinquent on mortgages for more than 60 days were seeking loan modification.

This number soared to 1,467,243 in October's Making Home Affordable Program, indicating that homeowners still face hardships that pressurize them to default on mortgages and seek loan modification. But the Federal Loan modification program is not the only option available to homeowners. This has lead to good news on the front of mortgage servicers like Fannie Mae whose delinquency rate has dropped for the first time in years.

There are extension programs used by homeowners if they are caught in a particular situation of mortgage default like underwater mortgages or presence of a second lien on the home. Yet, proprietary modifications are still present and used by leading servicers to address the mortgage payment needs of homeowners. None of the mortgage modification programs and extension programs is a sure way to help all homeowners. Foreclosure procedures may continue in many cases. But there is a campaign to educate all homeowners about the various mechanisms in place to prevent foreclosures that may help them save their home.

Meanwhile, the Obama administration will spend around quarter of sum of $50 billion it set aside for preventing foreclosures for homeowners, according to the Congressional Budget Office. The projections by the CBO raise fresh doubts about the foreclosure prevention efforts of the administration and its commitment to assist homeowners. Meanwhile, unemployment hovers at 10%. The good news is that large banks and corporations seem to be in the phase of recovery. The bad news is that small business and households are lagging behind.
Original post: on, your source of foreclosed properties.

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