Homeowners are still continuing to have difficulty meeting their monthly mortgage payment obligations as a result of the loss of jobs or a reduction in income due to underemployment, but certain servicers may be able to offer homeowners who are unemployed a forbearance plan on their mortgage payments. GMAC Mortgage is one of the participants in the Making Home Affordable Program, which offers an assistance plan for unemployed homeowners through the Home Affordable Unemployment Program.
Servicers who participate in the Making Home Affordable Program are able to work through this Unemployment Program to provide eligible homeowners the opportunity to forgo their monthly mortgage payments or qualify for a reduction in their payments for three months. Homeowners with servicers like GMAC Mortgage are hoped to benefit from these forbearance options as it could help prevent foreclosure in the long-term in certain cases.
According to the Making Home Affordable website, servicers will provide a forbearance period of at least three months to a homeowner while they look for a new job opportunity. While GMAC Mortgage is one of many mortgage servicers that participates in HAMP, it will be at a servicer’s discretion as to whether a homeowner will be able to receive forbearance beyond this three month period.
There are some who have pointed out that many servicers have been unhelpful in the modification program and the implementation of these extension plans have been minimal at best. However, plans like the Unemployment Program may be helpful for homeowners who need additional time to find an alternative employment opportunity so that they can either resume traditional payments on their home loan or qualify for a home loan modification payment plan.
Yet, homeowners with GMAC Mortgage and other servicers who do not find themselves in a position to begin repaying their home loan after the Unemployment Program forbearance has ended may qualify for foreclosure alternative programs which will allow them to either surrender their deed or short sell their home and take less damage to their credit history despite the fact that they have lost their property.
Again, not all homeowners may qualify for these assistance plans through major mortgage servicers and there are troubles that still remain concerning the implementation of mortgage assistance offers from the Making Home Affordable Program. However, homeowners are being prompted to contact their servicer if they foresee difficulty on the horizon as seeking mortgage assistance early may provide more opportunities for a homeowner to avoid foreclosure rather than if they let their mortgage troubles get out of hand.