Homeowners who may have been unaided by the Federal Home Loan Mortgage Modification program have options through in-house mortgage modification plans directly from mortgage servicers. Financial institutions who have been participating in the Making Home Affordable Program have offered assistance to homeowners outside of the federal modifications, and there are reports which have suggested that many homeowners are finding more success in these proprietary modification plans than from the Making Home Affordable modification initiative.
Recently, the Congressional Oversight Panel reviewed the federal modification program and many feel that the results have been lackluster. Some suggested that at the rate at which the program is progressing at the present time, only about one-fourth of the homeowners who were hoped to be helped will receive financial assistance through these modification plans. Obviously, this is brought about a great deal of criticism to the program and lenders as well, as there are homeowners who feel financial institutions are simply unwilling to make modifications available to homeowners in need.
Yet, factors like unemployment are also one of the causes of the problematic modification plan, as there are homeowners that redefault out of a modification plan, which suggests that no sustainability in mortgage payments on the part of homeowners is an underlying cause of federal modification problems. There have been homeowners who are accusing servicers of not properly adhering to modification qualifications and regulations as many say they have been kept in a trial modification for far too long.
However, banks which offer proprietary modifications have pointed out that success has been seen for numerous homeowners through the servicer-direct modification plans, and many feel that the reason the success has been seen is simply because servicers can tailor modification plans to benefit a homeowner’s particular situation. While there have been increases in the number of permanent modifications seen in the Making Home Affordable Program, there are also a growing number of homeowners who are seeing permanent modification assistance through these proprietary modifications.
Alternative, in-house modifications are not perfect, though, as there are still homeowners who are defaulting within these programs or who may not qualify for an alternative assistance plan. Yet, homeowners who are struggling have been advised to contact their servicer and inquire about proprietary modifications if they feel they can no longer afford their mortgage payment or if the federal modification assistance plan is not an option. While there are various financial assistance plans in place to prevent foreclosure, no matter what route a homeowner takes to achieve affordability on their mortgage payment, the main goal of these assistance programs are simply to find a plan that will help a homeowner avoid the loss of their home.