Alternative Modifications From In-House Programs–Proprietary Modifications Continue To Help Lower Homeowner Payments

Modifications have been a lifeline for numerous homeowners who have been unable to afford their traditional mortgage payment. However, there have been some individuals who have struggled within the Making Home Affordable home loan modification program as a result of various difficulties which have arisen concerning mortgage servicers and the governmental mortgages program.

Yet, good news may be in the form of proprietary home loan modifications which are in-house mortgage assistance modification plans made directly from servicers. Reports indicate that these in-house home loan modifications have been quickly outpacing governmental home loan modification assistance and, for homeowners who have been troubled with the Making Home Affordable Program, these types of home loan modifications may be an alternative which can assist homeowners in preventing foreclosure.

As an example, it was stated that in September 2010, mortgage servicers who are part of the HOPE NOW alliance completed around 150,000 permanent home loan modifications for that month alone. This number, which many deem to be a positive sign for these in-house modification plans, is a felt by many to be a substantial amount for only one month’s work by mortgage servicers.

The Making Home Affordable Program servicer report for September 2010 shows that, at the present time, there are only 466,708 active permanent modifications, so homeowners who may be unable to find affordability through the governmental home loan modification plan may see more success through alternative assistance options.

While these two types of modification programs are not in competition, since their ultimate goal is to prevent foreclosure for homeowners in the housing industry, homeowners have stated that servicers are to blame for the lackluster performance from the governmental modification initiative. However, with such success by the same servicers through private modifications, there are some who feel that some of the qualifications of the Making Home Affordable Program may be the stumbling block for many homeowners.

Yet, both programs have seen their share of success, failures, and criticism, but homeowners are still being made aware that these mortgage foreclosure prevention options are available and could be helpful for their situation. Obviously, homeowners will have to work with their primary mortgage servicer in order to obtain either a governmental home loan modification or in-house modification plan, but with reports that increasing success has been seen in the area of foreclosure prevention, many hope that this will bode well for the future of the housing market and for homeowners attempting to avoid the loss of their home.