GMAC Mortgage may have alternative modification options available to homeowners who might not qualify for the federal Home Affordable Modification Program, as there are a variety of servicers who are not only offering alternative modification plans but private modifications that may be of help to homeowners as well. While these programs have had their fair share of problems there are homeowners who have benefited from these servicer-direct plans that may be able to help homeowners better afford their mortgage payment during a time where financial troubles have arisen and have led to homeowners being unable to meet their traditional home loan payment.
Yet, these alternative modifications have not always been helpful for homeowners as some have defaulted even after a private or alternative modification was offered, and some are in a position where even reductions in their mortgage payment to a low percentage of their overall income is not enough to help. Also, GMAC Mortgage didn’t see a decrease in the number of private modifications they made, according to the Treasury Department reports released in May, and for homeowners whose trial modification was canceled, there were reports that only about four alternative modifications have been made in this particular category between March and April.
However, for homeowners who were not initially accepted to a HAMP trial modification plan, there were increases in the alternative modification category data which stated that, in the month of March homeowners had seen a total of 41,115 alternative modifications made up until that point but that number increased to 42,407 in the month of April.
Homeowners must remember that modification plans and servicers have work to do in terms of making these programs more helpful and, in some cases more available to homeowners, but they are worth exploring especially if a homeowner feels that they may be in a position to benefit from reduced mortgage payments while they ride out this difficult financial time in their lives. Homeowners will need to contact their servicer directly if they are having problems but it needs to be remembered that the HOPE Hotline has also been implemented as a part of the HAMP system of resources that homeowners may be able to use to their advantage.
While housing counseling assistance is no guarantee when it comes to avoiding foreclosure, if a homeowner has had trouble dealing with their servicer they may be able to talk to a counselor to explore not only their options within programs offered by their bank but the modification program in general and any state-specific plans that may be available. Homeowners with GMAC Mortgage also saw a slight increase in the number of permanent modifications that were made as of May, but again, there are some instances where homeowners need to go beyond traditional, federal modifications or even talk with representatives that may be outside of their servicer in order to get a better understanding of what opportunities may be available for them.