Homeowners with GMAC Mortgage may have seen that bankruptcies did increase for homeowners who were not offered a permanent home loan modification, or who were initially denied a trial modification within the Making Home Affordable Program, as there have been some men and women who have found themselves in such a difficult financial position that all areas of their financial life, not just their home loan, are struggling and bankruptcy has, in their opinion, then the only resort left. Yet, servicers and officials are stressing that homeowners do have opportunities to avoid extreme measures like foreclosure or bankruptcy but there may be necessary actions that have to be taken on the part of homeowners so they can avoid these problems.
Despite the fact that GMAC Mortgage did see an increase of almost 200 homeowners in the area of bankruptcy when they were not accepted for a trial modification, between the months of May and June, there was a slight decrease for GMAC homeowners who were facing bankruptcy after their trial modification had been canceled. Yet, GMAC Mortgage has been one of the servicers who saw an increase in the total number of active permanent modifications they have made between June and July, but homeowners in certain states may also have plans directly from their state housing agency that can help a homeowner find affordability on their home loan payment.
However, problems in this particular area of foreclosure prevention assistance that have arisen surrounding homeowners being unable to participate in these plans as a servicer isn’t required to allow homeowners to take part in such programs, and this has not always been an opportunity that homeowners are given in certain areas. Yet, even when programs from state housing agencies are unavailable, GMAC Mortgage and others may still offer extension plans from the Making Home Affordable Program that may address the needs of homeowners with certain financial circumstances in place.
Obviously, homeowners are not always guaranteed to avoid the loss of their home but officials are stressing that homeowners explore these alternative plans so that they may be able to avoid not only foreclosure but the need to file bankruptcy as well, as a mortgage payment is usually one of the more cumbersome obligations that a consumer must meet. Yet, homeowners may benefit from simple assistance through a nonprofit credit counseling organization as there may be areas of waste that could be eliminated or agreements worked out with other creditors that could help homeowners find the affordability they need in terms of their debt payment obligations, which could in turn free up more funds that can be applied towards their mortgage.