GMAC Mortgage Cancelled Trial Modifications Bring Alternative Assistance Plans For Some Homeowners

Homeowners with a GMAC mortgage have been angry over cancellations in the trial modification period of the Making Home Affordable Program. While these complaints are not exclusive to GMAC Mortgage, there are troubled homeowners who believe that many of the top lenders in the Home Affordable Program are not doing all they can to ensure that homeowners obtain the foreclosure prevention assistance or modification aid they need.

While many lenders have stated that trial plans are indeed canceled, they cite sources of homeowner error as the cause. Many of the top lenders have said that homeowners either do not provide the correct paperwork to continue with their trial modification, earn a permanent modification or, in some cases, homeowners still cannot afford their home loan payment even in a trial modification plan and they default.

GMAC Mortgage has stated that despite homeowners being dismissed from the trial modification program there are alternative plans available. According to the June Making Home Affordable servicer report, numbers as of May 2010 indicate that GMAC Mortgage has had 8,056 trial modifications canceled up to that point. However, 4,310 of those homeowners were given an alternative modification plan, 226 were offered a payment plan outside of the traditional modification, and 877 are current on their home loan payment after cancellation of their trial modification.

Yet the critics of GMAC Mortgage cite the fact that many homeowners who have had their trial modification canceled have experienced worse fates. Homeowners that have seen their trial modification taken away have experienced everything from bankruptcy to foreclosure in many cases. 202 homeowners fell into bankruptcy after having their modification trial canceled, 223 entered into a short sale or deed in lieu of foreclosure plan, while 651 have begun the foreclosure process with 275 foreclosures being completed.

There are good and bad endings to cancellation stories, but many homeowners want to see more done to keep troubled individuals in their home. While many lenders have stated that there are alternative options if homeowners do not qualify for a modification, but some homeowners simply will not meet the qualifications for the Making Home Affordable Program.

However, it’s understandable that homeowners who are struggling to save their home are frustrated when they are met with what seems like one roadblock after another when chasing a modification. Yet, homeowners that are struggling are often advised to first contact their lender about mortgage assistance options, and the earlier this is done the better. There are, however, homeowners who believe that working with lenders is of little use and turn to outside sources to help them deal with their lender and the modification program.

In these cases, homeowners are cautioned as there are many scams and dishonest companies who claim to help homeowners through the modification process, but only wish to exploit those who are in need. There are also reparable sources like the Making Home Affordable Program website that can be useful to homeowners who need advice, information or tools in dealing with lenders and working through the modification program.