GMAC Mortgage is one of the financial institutions whose homeowners have attempted to acquire a home loan modification plan, but failed to do so and faced foreclosure as a result. Numerous factors often account for homeowners being unable to acquire a home loan modification, but there are plans which are set in place to help homeowners prevent the loss of their home to foreclosure or foreclosure alternatives which may allow homeowners to avoid the formal foreclosure process.
Yet, foreclosure is still a problem for homeowners with a variety of servicers across the nation as factors like unemployment or underwater mortgages have created situations where homeowners simply cannot meet their mortgage payment. As an example, according to the September Making Home Affordable report, GMAC Mortgage had 1,406 foreclosure starts for homeowners who had their trial modification canceled in HAMP and 622 foreclosure completions.
However, the October report from HAMP showed that GMAC Mortgage at 1,522 foreclosure starts for homeowners who had their trial canceled and 727 completed foreclosures for that same group. Obviously, this data shows not all homeowners are able to qualify for the federal modification program and will eventually face foreclosure as a result.
There has been accusations from homeowners that servicers are not doing all they can to prevent these foreclosures, but there are some homeowners who have had difficulty with paperwork, their debt to income ratio, or homeowners have simply been unable to meet their mortgage payment even when a modification trial was in place.
Recent foreclosure suspensions and questions over the practices of mortgage servicers concerning foreclosure documentation and processing led many homeowners to believe that they were not being treated fairly when it came to mortgage assistance opportunities. Sadly, there are some reports which show that homeowners with many servicers are simply not in a financial position in their personal life to meet payments in the federal modification programs, which obviously lead to the loss of their home.
While servicers like GMAC Mortgage, among others, have been asked to reassess their foreclosure processing practices and procedures, homeowners are still turning to home loan modifications from the federal mortgage modification program and in-house foreclosure prevention plans in the hopes of keeping their home. Yet, not all homeowners may qualify and, as a result, there is concern that more foreclosures may be seen over the coming months as some homeowners continued to struggle.