Alternative Home Loan Modifications From In-House Servicer Programs–Are Proprietary Programs More Available?

Alternative home loan modifications have been one way that homeowners have been able to use in-house initiatives by various servicers as a way to find foreclosure prevention they need as federal modification plans have sometimes been difficult to acquire. Yet, despite increases in the number of permanent home loan modifications made from HAMP last year, proprietary home loan modifications were reportedly outpacing the number of federal modifications from month to month and, as a result, have been a more successful and available form of foreclosure prevention.

According to HOPE NOW, proprietary modifications numbered at over 82,000 in November of 2010, which greatly outnumbered both trial and permanent home loan modifications from the federal foreclosure prevention initiative. Questions over the success of the federal modification program has led many to seek out alternative forms of assistance as the number of homeowners initially stated to be helped as been predicted to be unreachable.

While there have been calls for the home loan modification program to be eliminated, there are still homeowners who are in need of foreclosure prevention assistance and many feel that both federal and proprietary home loan modifications may be able to offer more homeowners foreclosure prevention assistance in 2011 if issues are addressed. There are still homeowners facing mortgage payment difficulties even when a modification program is in place, but proprietary modifications seem to be more accessible to homeowners since they are, obviously, outnumbering federal modification plans from month to month.

Many feel that since servicers are able to tailor these programs to meet homeowner needs and adhere only to qualifications they set, more homeowners may be able to find the affordability they seek in their home loan rather than meet universal guidelines from HAMP that may cause them to be disqualified. While there are those who feel that oversight corrections in the federal modification program could lead to more success, currently there are homeowners who feel that federal mortgage assistance plans are an uphill battle and many frustrated homeowners have come through the modification program without the permanent assistance they need.

While issues do still need to be addressed before the maximum number of homeowners may receive the foreclosure prevention assistance they seek, homeowners do still have these alternative assistance plans directly from their servicer in many cases and, as a result, these proprietary initiatives may be called upon to help more homeowners avoid the loss of their home in 2011 if issues like unemployment remain problematic in the lives of homeowners and cause some to face potential foreclosure.