Homeowners may have alternative home loan modification options through proprietary mortgage assistance plans available directly from many of the nation’s top mortgage servicers. Homeowners who have been denied assistance from the governmental modification program have often been frustrated and heavily criticized financial institutions for not offering assistance to homeowners who face foreclosure.
However, these financial institutions that participate in the Making Home Affordable Program often offer alternative modification plans to homeowners who may either be denied a mortgage assistance plan from the Making Home Affordable Program or who may default even when a modification program is in place.
There have been arguments that some of these proprietary modifications are too expensive and may not be as affordable as governmental modification programs. However, despite the fact that homeowners do still struggle even when alternative assistance plans are in place, reports show that more homeowners have been assisted through these proprietary modifications than from governmental mortgage assistance plans from HAMP.
While these proprietary, in-house home loan modifications do offer alternative options to homeowners who may feel they have no other recourse once being denied or removed from a governmental modification program, they are still no guarantee when it comes to preventing foreclosure. Homeowners have benefited from these in-house modification plans, but there are still difficulties which many have faced as a result of factors like employment troubles or simply from the slow economic recovery being experienced.
Yet, despite homeowner complaints and troubles that remain, advisers often suggest homeowners who may have trouble meeting their mortgage payment contact their servicer to inquire about either a home loan modification program from HAMP or these in-house alternative programs, which also may be beneficial in helping homeowners avoid foreclosure.