Mortgage loan software can curb delinquency

For homeowners who are looking to create a monthly payment plan, working with a lender that uses mortgage loan software will help them create a payment plan within their budget.

No one wants to fall behind on their mortgage payments. Not only does it put homeowners at risk for losing their property, but it can make any future financial investments difficult. Working with a lender that uses mortgage loan software can prevent this from happening, as it helps design monthly payment plans that remain in an individual's budget.

However, many Americans have become delinquent on their housing payments. According to credit monitor TransUnion, if it wasn't for the homeowners who haven't paid their mortgages in more than a year, the nation's home loan delinquency rate would be only slightly higher than normal.

TransUnion vice president Tim Martin told USA Today that the delinquency rate would fall to about 2.5 percent, down from more than 5 percent, if those borrowers were excluded. 

Additionally, on Monday, the U.S. Department of Housing and Urban Development (HUD) announced that it cut loose 9,400 loans in the first sale under its expanded Distressed Asset Stabilization Program (DASP), and the federal agency plans to sell at least 30,000 more over the next year.

A seriously delinquent mortgage is a loan that is 90 days or more past due. Experts say that more than the 40,000 FHA loans being sold are at least six months late and in foreclosure.

"That qualifies them for the DASP, assuming that the mortgages' servicers have exhausted all FHA loss-mitigation programs," said an AOL Real Estate article. "So that means that thousands of borrowers with mortgages that are eligible for the DASP – and, arguably, equally as deserving of it – won't get it and will continue to drift toward eviction."

When a homeowner is looking for a lender, choosing one that uses a real estate amortization schedule will help them remain in their monthly budget.