Homeowners with mortgage servicers participating in the Making Home Affordable Program have seen various results and can come to different ends in their pursuit of a more affordable home loan payment. GMAC Mortgage is one of the servicers who has been participating in the federal modification plan for homeowners, but there are individuals who are not only facing foreclosure from this servicer, among others, but numerous homeowners with countless financial institutions are also having trouble with bankruptcy as well.
According to the October Making Home Affordable report, 4,512 homeowners with GMAC Mortgage who were not accepted into a trial modification plan were in the process of bankruptcy, and homeowners who had their trial modification canceled numbered at 316 who were in the process of bankruptcy as a result. While this report for GMAC Mortgage only tracks homeowners who had their trial canceled or denied, there are many individuals who feel that either the modification program or mortgage servicers are in need of retooling so that more homeowners may find assistance.
Yet, servicers like GMAC Mortgage are reportedly seeing success from in-house modification plans as overall proprietary modifications are said to be outpacing federal assistance options. One main reason which is cited for the success of these in-house modifications is that servicers are able to tailor qualifications and requirements to help particular homeowners rather than apply general qualification guidelines to all homeowners, as is the case in the federal modification plan.
However, there are still homeowners who lay the blame for foreclosure and bankruptcy difficulties at the feet of mortgage servicers, as complaints have been waged against the vast majority of financial institutions participating in the Making Home Affordable Program. Understandably, homeowners are frustrated when they face the loss of their home or must turn to bankruptcy as a result of being unable to obtain a modification, but there are still advisers who are prompting homeowners to contact their servicer or consult resources from the Making Home Affordable Program to assist them with their mortgage troubles.
Federal modifications and private, in-house modification plans from financial institutions are still available, but it is hoped that with these assistance plans and extension programs which are available to address other homeowner troubles, more foreclosures and bankruptcies will be avoided in the coming months, especially if conditions in areas like the job market improve and homeowners are able to find a more stable financial ground in their personal life.