Loan Modifications on the Rise
HOPE NOW has released its report for the second quarter of 2016, and the organization’s findings document a significant rise in permanent loan modifications between April and June of this year.
There were 100,198 reported modifications during quarter 2, which represents a 16 percent hike from the first quarter’s results. Proprietary modifications accounted for 69,000 of this total, with the rest coming from the government’s Home Affordable Modification Program. Loan modifications are not the only foreclosure alternatives being sought out by homeowners, either. Non-foreclosure solutions totaled 335,000 during Q2. This number contrasts the falling foreclosure rates currently being seen across the nation, with just 81,000 foreclosure sales completed during the second quarter of 2016.
Good or Bad News?
While the high number of loan modifications does suggest that an increased number of Americans are having difficulty making mortgage payments, the report is not necessarily all bad news. In fact, it demonstrates that more homeowners are actively seeking out alternatives to foreclosure. Permanent loan modifications are a viable solution for staying in one’s home. However, this solution is not without drawbacks. While not as detrimental to a person’s credit score as a foreclosure, credit does take a blow when a modification is procured. Additionally, it does not always protect an owner from foreclosure. Banks are known to begin the foreclosure process while modifications are being processed, and a strong West Palm Beach foreclosure attorney is essential for preventing such action.
If you are struggling to keep up with mortgage payments, a loan modification could be right for your situation. A West Palm Beach foreclosure attorney who processes loan modifications can help you through the process to enhance your chances of receiving a permanent modification. To learn more about this process and how Kelley, Fulton & Kaplan attorneys can you help you through it, call our office today.