GMAC Mortgage is one of the servicers who not only participates in home loan modification plans through HAMP but also offers a short sale and deed in lieu of foreclosure programs to homeowners who face the loss of their home. Many individuals have turned to these foreclosure alternatives as a way to avoid going through a formal foreclosure process despite the fact that they are no longer able to afford their home.
The Home Affordable Foreclosure Alternative plan has helped numerous homeowners who had previously been able to meet their monthly mortgage obligation but due to financial strains in their life were unable to benefit from mortgage assistance opportunities, like modifications and now face the inevitable loss of their home. While homeowners who are simply having trouble making their mortgage payment may qualify for a deed in lieu of foreclosure program, homeowners in the same situation but with an underwater mortgage have typically turned to short sales.
For GMAC Mortgage homeowners, there has been an increase in the number of foreclosure alternative programs offered according to previous reports from the Making Home Affordable Program. As an example, homeowners who were not accepted into a trial modification but were in the process of either a short sale or deed in lieu of foreclosure program, as of the September 2010 report, numbered at 3,524. This same category of homeowners, for the month of October, had increased to 4,210, which gives many hope that some servicers are still offering these alternatives to foreclosure.
While homeowners outside of this particular category and with other servicers have been offered either a short sale or deed in lieu of foreclosure plan, there have been some homeowners who argue that these financial institutions are not offering these foreclosure alternative options in as many homeowners as they potentially could. However, not all homeowners will qualify for a foreclosure alternative plan, so some homeowners have become frustrated due to the fact that their mortgage servicer proceeded with foreclosure rather than granted them the chance to participate in a short sale or surrender their deed.
Homeowners who previously had no problems making their mortgage payment but suddenly faced a reduction in their income due to factors like unemployment or are in danger of defaulting as a result of an underwater mortgage may qualify for these foreclosure alternative plans from their particular financial institution. Yet, homeowners are advised to contact their servicer early if they feel that foreclosure may be inevitable as the sooner they begin the process of these alternative plans, the higher the likelihood they may avoid the loss of their homes through foreclosure.