Permanent Home Loan Modifications Halt Home Repossessions

More homeowners have halted home repossessions and are gaining permanent home loan modification according to the White Houses Monthly Housing Scorecard and Making Home Affordable Program Performance Report. Home Destinations, a Minneapolis Metro professional Realtor with RE/MAX Results, comments on HAMP's report and how vital it is to keep families in their homes for the long-term through a permanent home loan modification.

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Minneapols Permanent Home Loan Modifications

Minneapols Permanent Home Loan Modifications

"These programs have paved the way for millions of additional families to get help with their mortgage payments while setting better standards for the mortgage industry." ~ Kurt
Usowski, HUD

Minneapolis, Minnesota (PRWEB) April 08, 2013

More homeowners are gaining permanent home loan modification according to the White Houses Monthly Housing Scorecard and Making Home Affordable Program Performance Report.

According to the report, over 1.1 million homeowners have received a permanent home loan modification through the Home Affordable Modification Program (HAMP). "These homeowners have reduced their first lien mortgage payments by a median of approximately $546 each month. That is actually more than one-third of their median before modification payment saving a total estimated $18.5 billion to date in monthly mortgage payments," states the government report.

The Federal Reserve has acted on several fronts to stabilize the housing market and help American homeowners maintain their dream of homeownership. "Looking back three years, economic stresses had created an intently tight supply of home mortgage credit, limiting Americans ability to buy homes with a quality loan or to refinance their home mortgages. Millions of responsible homeowners who had responsibly made their monthly payments saw their home values tumble. They also found themselves penalized and unable to refinance at lower mortgage rates and gain a permanent home loan modification," says Jenna Thuening, owner of Home Destination.

Of all non-GSE home mortgages that qualified for principal reductions through the government's Home Affordable Modification Programs in February, 70% included a principal reduction in some form, the White House announced Friday.

The Treasury made this assertion in its latest Housing Scorecard, which tallied the results of the government’s various loan modification and homeowner-aid programs over the course of the past four years.

"It is important for homeowners to be aggressive to protect their home investment interests by keeping a view that banks are in business to make money," reminds Jenna. The National Mortgage Settlement seeks to ensure that if a bank sees a foreclosure as an easy opportunity to do so, that distressed homeowners have better protections going forward. A Certified Distressed Property Expert and can help determine what a homeowner's options are. "A complaint under the category of "unfair denial of modification" can be filed with the presiding Minnesota regulatory agency, granting homeowners a window to have their loan modification case reviewed," adds Thuening.

Looking for permanent home loan modifications reported since the January 2013 Report, Home Destination found the following numbers:

1) HAMP Modifications with Earned Principal Reduction Under PRA2 - 3,430

2) HAMP Modifications with Upfront Principal Reduction Outside of PRA - 1,771

3) Total HAMP Modifications with Permanent Principal Home Loan Reduction - 5,201

Nationally chartered banks report to the Office of the Controller of the Currency, and hold the power to decide if the home loan modification request was reasonably denied. Some determined Minnesota residents caught in the Minnesota foreclosure timeline have actually had court findings in their favor. "Hasty repossessions have been halted when a more favorable action can prove beneficial to those looking for a solution to their loan modification denial. New homeowner protections are in place and homeowners wondering how feasible it is to gain a permanent loan reduction are encouraged to try.

The OCC reports that the number of home loans in the process of foreclosure filings at the end of 2012 fell below one million for the first time since the end of June 2009. Home Destination also found the following data points in the OCC summary encouraging:

  • Over 93 percent of modifications in the fourth quarter reduced monthly principal and interest payments.
  • 58.9 percent of modifications reduced home payments by 20 percent or greater.
  • The average homeowner reduced payments by $389 per month by gaining the modification.
  • Modifications acquired through the Home Affordable Modification Program (HAMP) reduced monthly payments by an average of $558.

"It is important that Minneapolis area homeowners relief efforts focus so largely on underwater borrowers and help them remain in their homes with the security a permanent home loan modification offers. Principal mortgage reductions help homeowners feel more positive about their family's future. Everyone is more comfortable when having the ability to afford their homes." says Thuening.

Home Destination is a Minneapolis metro residential Realtor built on the promise of exceptional customer service. Owner Jenna Thuening is also, a Minneapolis Certified Distressed Property Expert who helps homeowners determine when it makes sense to refinance and try to gain a permanent home loan modification. Call 612-396-7832 to engage her expertise.