Foreclosure suspensions by servicers like GMAC Mortgage/Ally Financial have caused many questions on the part of homeowners who had either been through the foreclosure process or faced the loss of their home. While there are many who are angry at mortgage servicers for not properly processing documents and following correct procedures of review, there are those who feel that the vast majority of foreclosures made by these institutions will be found to have been warranted.
While mistakes were made during the processing and review of foreclosure documents, there is an overall concern as to why so many homeowners were facing foreclosure. The vast number of documents that were being processed for foreclosure is said to be one of the main reasons that employees of financial institutions like GMAC Mortgage/Ally Financial were simply signing foreclosure papers without properly reviewing them.
GMAC Mortgage has offered home loan modifications for homeowners through programs like the Making Home Affordable Program, in the hopes of preventing foreclosures. Yet, there are indications that numerous homeowners with some of the nation’s top mortgage services are still defaulting despite having these assistance plans in place.
This has led to questions over whether servicers are doing all that they can to help homeowners stay in their home or if modifications are simply unhelpful at this point. There are those who would argue that factors like unemployment are the reason that GMAC Mortgage and other servicers are processing so many foreclosures, but some homeowners blame servicers for these foreclosure numbers.
While suspensions continue and reviews are in process, GMAC Mortgage does still offer foreclosure prevention assistance to homeowners through modification programs. However, it’s hoped that the lapse in reviews of these foreclosures over the past months will bring changes about in not only the foreclosure process, but may also offer more extensive modification assistance to homeowners as well.