Private Home Loan Modifications Through In-House Alternative Modification Plans–More Help For Homeowners?

Many homeowners are seeking assistance through home loan modifications in the hopes of saving their home from foreclosure. Unemployment and other difficult financial and economic troubles have plagued homeowners over the past months and, as a result, have necessitated the creation of mortgage prevention efforts like those provided through home loan modification plans.

While the Making Home Affordable Program is the most well known way of obtaining mortgage assistance, there have been reports from Hope Now that indicate more homeowners may have received assistance from private, in-house alternative modification plans than from the Obama Administration’s modification program. Mortgage servicers have been offering alternative assistance plans to homeowners who were denied a modification from the Making Home Affordable Program, but little is known about these alternative modifications.

The Hope Now report states that, for the month of July, 120,351 permanent mortgage modifications were made through these alternative mortgage assistance plans. While the Home Affordable Modification Program only made around 37,000 modifications, more specifically 36,695 according to the Hope Now report, it is being reported that more homeowners stand to benefit from these in-house modifications despite the fact that mortgage servicers use various qualifications and criteria when considering homeowners.

There are accusations that in-house, private modification plans directly from mortgage servicers may not be as cheap as those offered from the Making Home Affordable Program, but when a homeowner has been denied mortgage assistance through the Obama Administration’s plan, they are left with few options to prevent foreclosure.

Foreclosure still remains a problem for many homeowners as mortgage delinquency and defaulting continue to trouble many homeowners who are either unemployed or underemployed. Also, problems like underwater mortgages remain present in the housing market, which have offered their own solutions for assistance plans, but it is hoped that with private home loan modification plans and the Making Home Affordable Program still offering these types of assistance, more homeowners may be able to save their home despite continued difficulties.