Homeowners who are looking for a home loan modification have had success when it comes to alternative modification plans made directly from their servicer, as proprietary plans are still being used to lower a homeowner’s overall mortgage debt obligation to a more affordable level when financial distress has risen. Also, according to data that has been released by the HOPE NOW network, proprietary modifications have usually outnumbered federal modification programs in terms of the number of homeowners who are seeing assistance from these in-house initiatives.
Yet, as with the federal modification program, there have been some decreases seen during parts of 2011 and since the inception of the program in terms of the number of modifications that are made on a monthly basis. In some cases, home loan modifications from HAMP and proprietary plans increased from one month to another, while there have been periods of time where these modifications fell. However, this is something that may be understandable due to the fact that changes in unemployment, the housing market, and the number of homeowners at any particular time who are specifically looking for modification aid may have varied and then led to differing numbers each month.
It was recently reported here in July that proprietary home loan modifications did see a slight decrease from April to May of 2011, as these proprietary modifications dropped from over 57,000 that were made in April to nearly 53,000 in May. While the number of modifications that were made did see a decrease, homeowners need to take note that these plans are still available and being used by servicers to assist homeowners who may not qualify for a federal home loan modification.
Understandably, these in-house assistance options that offer an alternative to federal modifications are not a guarantee when it comes to helping homeowners keep their home, but it can bring comparable benefits as a federal modification, in terms of rate reductions or term extensions, both of which may be used to lower the monthly payment a homeowner must meet. Despite the fact that these modifications have not been made in a number that is pleasing to some, they are still being offered to homeowners and, as state plans that offer foreclosure prevention assistance are becoming more widely used and foreclosure alternatives are being offered to homeowners who do not qualify for these modification programs, homeowners are finding more options that may help them avoid a formal foreclosure even if they are in a difficult financial position.
Since these alternative modifications are made directly from a homeowner’s mortgage servicer, it will be necessary to speak with a representative concerning this particular route of foreclosure prevention assistance, but those who are still pursuing a federal modification also have outside resources like housing counselors that may guide them during their pursuit of a lower payment on their mortgage.