Homeowners who have been seeking lower monthly mortgage payments have typically turned to home loan modification programs as a way to obtain the affordability they need at the present time. Various troubles in the lives of homeowners have caused many to be unable to meet their current mortgage payment, but modification programs that have offered extended loan terms, lower principles, or even forgiveness of mortgage principles have assisted some homeowners through programs like the Making Home Affordable Program.
However, there are reports on proprietary modifications which seem to indicate that in-house alternative modifications, made directly from mortgage servicers, are helping a greater number of homeowners than the governmental mortgage modification plan. These in-house modification plans usually will vary in their requirements and qualifications from lender to lender, but data seems to suggest that these alternative modification plans have been more helpful over the recent months to homeowners who may be unable to find the affordability they need through HAMP.
Many feel that these home loan modification programs made directly from mortgage servicers have been more helpful simply because there is no set requirements in place from the government. Servicers have often argued that homeowners are not seeing success in the Making Home Affordable Program simply because they are not qualifying for these assistance options. There have been homeowners who have pointed out that servicer error or disarray on the part of their financial institution has led to the inability of some to obtain a mortgage modification.
However, these alternative modifications from these same mortgage institutions are said to have helped around 3 million total homeowners outside of HAMP. This data has been tracked by HOPENOW.com and points to the fact that homeowners who may be frustrated or feel that governmental modification programs are hopeless do have alternative options.
While not all homeowners will benefit from modification programs, be they those offered from the Making Home Affordable Program or alternative modifications, more homeowners may find mortgage assistance through these in-house plans if mortgage assistance from HAMP is unavailable.