It was reported in the July Making Home Affordable Program servicer report that a cumulative number of 12,912 homeowners had their permanent home loan modification canceled, as of the report’s release. The number of permanent modifications that were started numbered 434,716, which would lead many to believe that the number of permit modifications that have been canceled are minimal but homeowners are still outraged, angered, and left despondent when they are not given assistance on their home loan.
It’s understandable that homeowners would be upset if their permanent modification was canceled, and it has been cited that the main reason a modification is canceled is due to a homeowner’s inability to pay their home loan payment even when assistance programs are in place. Those homeowners who are unable to make their mortgage payment even when a modification is offered often have this problem due to unemployment or a similar financial strain which has caused many homeowners to suffer when it comes to their monthly income.
However, there are reports that many mortgage servicers are offering alternative modification plans when a homeowner is denied help from the Making Home Affordable Program. According to the July Making Home Affordable report, homeowners who had their trial modification canceled or were denied a trial modification from one of the top 8 mortgage servicers in the program were given alternative forms of assistance in some cases. It is reported that 186,157 alternative modifications were made for homeowners who had a trial modification canceled and 191,187 alternative modifications were offered to homeowners who were not accepted into a trial modification.
While some argue that these alternative modifications directly from servicers vary and may not always be in a homeowner’s best interest, there is some hope for homeowners after they have been denied assistance from the Making Home Affordable Program. As the economy slowly recovers and jobs are said to be returning in the private sector, more homeowners are fighting just to stay afloat and keep their home. Modification assistance may be difficult to obtain, but these in-house mortgage servicer plans offer homeowners another option in the cases where a homeowner is denied aid from the Making Home Affordable Program.