Alternative Home Loan Modification Plans–Can Modifications From Mortgage Servicers Lower Mortgage Payments?

Home loan modification plans from the Making Home Affordable Program have been assisting homeowners over the past months by offering foreclosure prevention options through more affordable monthly mortgage payments. However, there have been difficulties between many homeowners and mortgage servicers, specifically when homeowners are denied a permanent home loan modification from the Obama Administration’s mortgage modification initiative.

Yet, despite criticism that has been levied against many of the financial institutions participating in the Making Home Affordable Program, there have been reports that more homeowners are receiving assistance through in-house modification plans made directly from mortgage servicers. Homeowners know that many of the nation’s top financial institutions like Bank of America, Citigroup, Chase, and Wells Fargo have offered modification plans through the Making Home Affordable Program, but these institutions, along with other servicers, have offered in-house modification plans as well.

While not a great deal is known about in-house modification plans, it is believed that more homeowners are being assisted through these alternative modification efforts than from the Making Home Affordable Program. While arguments against mortgage servicers in the Obama Program have stated that mortgage servicers do not use the same criteria for all homeowners who are seeking a modification, many believe that this aspect which is seen as detrimental to the Home Affordable Program is what is helping in-house mortgage modification plans.

Alternative modification plans directly from mortgage servicers are said to use various criteria and qualifications for homeowners who may have been disqualified from a permanent home loan modification, but it’s believed that by working individually with homeowners through these in-house initiatives, more individuals can get the mortgage assistance they need specific to their particular home loan situation.

No mortgage servicer has been perfect in their implementation of these foreclosure prevention efforts, but since these alternative modification plans are offered from many of the nation’s top servicers, it’s hoped that more homeowners will find foreclosure prevention mortgage assistance even if they are denied a modification from the Making Home Affordable Program.