Homeowners with GMAC Mortgage/Ally Financial may still have opportunities to obtain a home loan modification as GMAC continues to participate in the Making Home Affordable Program. Yet, many homeowners feel that modification programs or servicers are to blame for the lack of assistance that is being seen in many areas of the housing market.
Servicers have been under attack by homeowners who accuse them of not offering assistance plans to all homeowners who qualify or simply not making the efforts that are needed to prevent homeowners from losing their house. Recent news over GMAC Mortgage allegedly using improper foreclosure documentation practices has led numerous homeowners to question whether they should have lost their home.
While the majority of cases seem to point back to the fact that homeowners had defaulted on their mortgage, which led to their foreclosure, there are arguments being made that home loan modification plans could have helped in many cases. Yet, GMAC Mortgage has seen increases in the number of modifications they have made to homeowners over the past months, but there are still problems with homeowners defaulting even when an assistance plan is in place.
The Making Home Affordable Program works with homeowners and servicers to provide various home loan assistance options, most commonly modifications, but there are also alternative modification plans that are reportedly being made directly from mortgage servicers. Financial institutions often argue that homeowners are given opportunities to receive a lower payment on their mortgage, but simply cannot meet these requirements in most cases when factors like unemployment are present.
While foreclosure difficulties from GMAC Mortgage had many homeowners angry over the loss of their home, again, defaults on home loan payments were said to be the main cause of foreclosures, even though improper documentation practices may have been used. Yet, homeowners may still qualify for a home loan modification if they are having trouble meeting their monthly mortgage payment or foresee trouble down the road from factors like the loss of their job.
GMAC Mortgage and other mortgage servicers, again, continue to see increases in modification numbers, but they have not been perfect in their implementation of these plans. However, despite the fact that the modification program is not without error, there are still assistance plans which homeowners may use to avoid foreclosure.