GMAC Mortgage homeowners who are pursuing a permanent modification may have good news in that permanent modifications that are currently active continue to increase with GMAC as the recent Treasury Department reports on this specific area of modification program have shown that increases have not only been made with this particular servicer but with other major financial institutions as well. The current trend of increases that we have seen over the past months may bode well for homeowners who are positioned where they may face foreclosure if modification or other foreclosure prevention plan is not offered, but there are still homeowners who have yet to even begin the modification process and may be unsure of whether these options are still helping.
However, GMAC Mortgage saw an increase in the number of active permanent modifications between June and July as these numbers increase from 38,559 to 39,052. Obviously, homeowners have not always had an easy transition from financial distress to a trial modification and then a permanent modification plan but there are strides being made by certain mortgage servicers that have put them in a position where they are able to do more for homeowners and potentially reduce the amount of problems that have hindered homeowners from taking advantage of assistance programs in the past.
Furthermore, GMAC Mortgage has seen improvements in the area of conversion rates as well as the Treasury Department indicates that, as of the August 2011 report that was released here in October, 82% of homeowners whose trial started after June 1 of last year have been able to convert to a permanent modification, or are in the pending process. This is obviously helpful for homeowners who are in need of a reduced payment as these modifications may be able to extend mortgage terms, reduce rates, or even offer mortgage principal forbearance options in some cases where homeowners have fallen behind or need a lower overall amount calculated into how much they can meet a monthly basis.
While the 9.1% unemployment rate is surely one of the factors that homeowners are having to deal with and one of the main reasons behind pursuing these modifications, GMAC Mortgage homeowners, like many others, may also be in a position where they need to consult with resources to help them get control of their debt in other areas, as excessive debt obligations may have some homeowners in a situation where even a modified mortgage payment plan will be unhelpful. However, there are opportunities for homeowners with GMAC to also take advantage of some extension plans, like second lien modifications or unemployment assistance, but this is honestly only going to help homeowners who are in certain situations where these factors are stopping them from benefiting from mortgage modification assistance.