The current administration has implemented programs to help strapped homeowners manage their mortgages. While these plans may help in the future, until the kinks are worked out, consumers need alternative loan modification programs.

The Home Affordability and Stability Plan

Two programs have been created to help homeowners facing foreclosure. The first allows homeowners with mortgages owned or guaranteed by Fannie Mae or Freddie Mac to refinance their mortgages to take advantage of lower interest rates even if their homes have lost value. The goal is to reduce mortgage payments and make the loans more affordable.

The other initiative involves loan modification programs aimed at homeowners who can't afford their mortgage payments due to hardship such as job loss or high medical bills. The consumer gets a lower interest rate and the government pays the difference between the new and old rate so the lender doesn't lose money. Incentives are paid to both the lender and borrower every year the loan remains current for the first five years, encouraging both parties to keep the arrangement.

The New Programs Aren't Working Yet

While the refinance and loan modification programs both look good on paper, investigations by the news media have shown they aren't working. Many lenders knew nothing of the programs in their early days and often the borrowers had to educate them. Even now they don't understand the programs completely and are resistant to their adoption.

Borrowers have reported months of waiting for lenders to implement these loan modification programs only to discover their paperwork had been lost and they had to start over. In other cases, lenders take advantage of the expiration of a program's grace period to increase rates back to their old levels. Borrowers are left frustrated and still struggling with loans they can't afford.

There are a number of homeowners who don't meet the qualifications of these programs. They may not meet the hardship definition or other eligibility requirements.

Consumers Turn to Private Loan Modification Programs

While these loan modification programs may work in the future, consumers can't wait months when they need help right away. Organizations with years of proven and verifiable experience in mortgage foreclosure rescue offer programs designed to aid homeowners in dealing with burdensome loans.

In addition to refinancing and loan modification programs, a loan modification company offers many more options for dealing with debt. A forensic loan audit may reveal the borrower's loan is in violation of state and federal regulations, putting borrowers at an advantage when negotiating mortgage foreclosure solutions.

Borrowers in desperate financial straits need real help right now, not promises of help in the future. They can't afford to wait for new loan modification programs to be fixed. They need answers that work and access to different options based on their respective situation. Homeowners will do better working with a loan modification company which can provide the expertise needed to find an effective solution.