Second lien modifications from GMAC Mortgage saw improvements in reports released here in October, which has tracked data through the month of August for homeowners who have been successful at qualifying for and receiving one of these modified payment term arrangements on their second mortgage. Not all homeowners are seeing success when it comes to primary modifications and one of the causes which has arisen in some instances usually centers around the inability of a homeowner to make their mortgage payment as a result of a second lien, even when a modified primary mortgage payment is in place.
Yet, homeowners with GMAC Mortgage saw an increase in not only the number of second lien modifications they have started but in areas where these second liens were extinguished fully, and active modifications with a partial extinguishment saw an improvement from GMAC Mortgage’s efforts as well. According to Treasury Department data, GMAC Mortgage saw an increase in the number of second lien modification starts between July and August from 1,991 to 2,405. Furthermore, the number of full extinguishment that were offered increased from 297 to 434, and the active number of second lien modifications that may have offered a partial extinguishment increased from 1,693 two 1,968.
Again, not all homeowners may benefit from this particular modification plan, as homeowners will have to qualify for a primary modification and even when the second lien modification program is offered it does not necessarily mean that a homeowner will have their second mortgage forgiven. However, this particular plan has gone further to help homeowners like those with GMAC Mortgage in terms of allowing for a more affordable overall monthly payment obligation on a homeowner’s mortgage, and has been helpful when it comes to allowing homeowners to avoid foreclosure as a result of their inability to meet this obligation.
Yet, homeowners do need to understand that when it comes to finding affordability on a home payment, GMAC Mortgage does participate in other programs not only within the federal home loan modification program but with state housing agencies as well, so homeowners who are in a particular position may not benefit from modification help but rather would be better served if they pursued help from one of these alternative programs.
However, when it comes to certain types of initiatives, not all servicers are working in every state to implement these state-specific mortgage assistance plans, but homeowners are still urged to speak with their mortgage servicer or representatives from housing counseling services made available that may help guide homeowners with specific mortgage servicers to the best possible foreclosure prevention program that will be available for their situation and may address their particular needs.