According to the July Making Home Affordable servicer report, GMAC Mortgage saw a decrease in the number of trial home loan modifications that are currently active as of the report’s release date. Many lenders in the Making Home Affordable Program did see a decrease in the number of trial home loan modifications that are in progress, with an overall reduction for the program as a whole.
GMAC Mortgage, as of the June report, had 6,083 trial home loan modifications that were active. However, the number of trial home loan modifications reported for July dropped to 2,777. While GMAC Mortgage did see an increase in the number of permanent home loan modifications they had made, the decrease in the trial modification number points to what many feel to be a bigger problem.
Many homeowners are either having trouble getting a trial modification or are being disqualified from the trial modification program for a variety of reasons. There are cases where homeowners have their trial cancelled but go on to an alternative home loan modification from their servicer or an alternate payment arrangement but some homeowners have faced a worse outcome.
Foreclosures and bankruptcy have been the end result for many homeowners who had their trial modification cancelled, and it’s meeting one of these ends that homeowners are obviously fighting to avoid. Homeowners continue to accuse lenders of not doing all they can to help but lenders still say some homeowners simply don’t qualify for a home loan modification or make missteps in the modification process.
There is also trouble with defaults and missed payments for homeowners who are in the modification program. Some homeowners are unable to keep their home despite the fact that they have been given a modification or reduced payment plan and this has many looking for assistance outside of the modification program.
Home loan modifications are still available though and extension programs have been proposed for homeowners with specific trouble, like those who are unemployed, so there are mortgage assistance options outside of the modification program for homeowners in need.