Homeowners with GMAC Mortgage may have seen the number of active trial modifications that have been reported between June and July decrease, but this is something that is common among many servicers as these active trials have not always risen in number despite the fact that there are some areas of the federal modification program that are showing trials are on the rise in some instances. As an example, homeowners with GMAC Mortgage saw an increase in the number of trial plans that have been offered and the number of trials that have been started, cumulatively, between the months of June and July.
This overall total shows that there are still efforts being made not only by GMAC but by other servicers as well, even though active trials may not look to be seeing success in the area of homeowner foreclosure prevention. Yet, the cumulative totals for GMAC Mortgage did increase by almost 1000 for the number of trial plans offered as reported between June and July, and the cumulative total of trial modifications started increased by almost 800 during the same timeframe.
However, there are still some homeowners who are having trouble with a variety of servicers in the area of trial modifications due to the fact that some homeowners are either being denied a trial modification payment plan, while others feel that they have been kept in a trial modification plan for much too long. While GMAC mortgage is one of the servicers that has been categorized as only needing a minor amount of improvement in the federal Making Home Affordable Program, there are still homeowners who are facing trouble when it comes to transitioning to a permanent modification status after a three-month trial period has been completed.
Yet, homeowners are still not guaranteed success when a trial modification plan is offered, or a permanent modification for that matter, as some of the reasons that trial modifications are canceled and permanent modifications are not granted surrounds the problem of some homeowners being unable to pay their modified home loan payment despite the fact that it is usually quite lower than their traditional payment obligation. These trial modifications have been helpful though and do continue to offer solutions for homeowners facing potential foreclosure, so they are still worth exploring by homeowners who are facing financial distress at the current time.
Homeowners do need to remember that each servicer has had a varied amount of success and may focus their homeowner assistance efforts in different programs, as some may center more on helping homeowners through private modifications, while others are still using these federal modification programs to assist homeowners in need. However, major servicers like GMAC mortgage do continue to work with homeowners in different capacities, but problems have arisen in the past. Due to the imperfections of these modifications, homeowners should remember they still have foreclosure prevention opportunities that may go beyond simply seeking a trial modification.