Homeowners who may have had difficulty in the federal home loan modification program have, in some cases, found affordability through alternative modification programs made directly from mortgage servicers. It’s been reported that proprietary modifications have been offering permanent home loan assistance plans to numerous homeowners over the past months and offer solutions for homeowners who face foreclosure on their home.
The HOPE NOW organization, which is an alliance of private sector mortgage servicers, releases monthly reports and press releases concerning this alternative modification initiatives and recently stated that around 100,000 proprietary modifications have been made for homeowners in the month of October alone.
Obviously, this may point to positive signs for homeowners who face the loss of their home without mortgage modification assistance, and many servicers argue that these proprietary modifications can be more useful since they are not following federal guidelines as to who may qualify for a modification plan.
Essentially, this means that financial institutions may be able to tailor modification plans to meet a particular homeowner’s needs rather than applying universal guidelines to all homeowners who may be in different financial situations or need their mortgage difficulties addressed in a unique way. However, there are homeowners who have stated these proprietary modifications have not been perfect and problems have arisen just as in the federal modification program.
The nation’s top mortgage servicers, like Bank of America, Citigroup, Chase, and Wells Fargo, just to name a few, are members of this alliance and may be able to help their homeowners through these in-house modification programs. While alternative modifications, as with federal modifications, are no guarantee, financial advisers have been prompting more homeowners to talk over options with their servicer if meeting their monthly mortgage payment obligation is becoming problematic or a homeowner feels that default may be a threat in the near future.