Here in late October we are seeing some consumers finding it difficult to meet certain loan payments and continued issues have been in place for homeowners who are still facing delinquency, as we have seen from various reports that there are certain servicers who are seeing increases in the number of homeowners who are behind on their mortgage payments. For GMAC Mortgage, the number of homeowners who were reportedly delinquent within the federal Making Home Affordable Program, meaning homeowners who were behind on their mortgage payment with GMAC and potentially qualified for a modification, increased between July and August, which is part of the mixed results that are being seen as delinquencies with some servicers in this area had been up and down.
Some servicers have seen delinquencies drop, which is a positive sign in some cases as there are some homeowners who are finding themselves on a more stable financial ground and able to meet their mortgage payment, but for GMAC Mortgage, there was a slight increase between July and August as the number of homeowners who were delinquent on their mortgage payment by 60 days or more increased from 27,649 to 27,875.
Homeowners who are falling behind on their mortgage payments are often advised by professionals like housing counselors or even credit counseling agencies to make sure that they are in a position where they have no excessive debts, wasteful spending, and generally are in a position where they can benefit from these modifications, as homeowners who have sometimes fallen back into an area of delinquency or even defaulted entirely may be those who haven’t been able to manage their income in a way that helps make even a modified mortgage payment beneficial.
There is assistance still available for a wide range of homeowners from housing counseling credit counseling agencies, as some homeowners may be able to benefit from simple financial advice and return to making their mortgage payment without much trouble but in cases where we have seen even reduced payments being unhelpful for homeowners, this again may point to a homeowner’s inability to either manage their finances in a way that is best for their financial troubles or there are also some instances where a homeowner is in a poor financial predicament because of factors like unemployment.
Yet, GMAC homeowners who may be finding that they are budgeting wisely and still cannot meet even a modified home loan payment, if other factors like unemployment, a reduction in their wages, or health problems may arise, there are also plans within the federal modification program that may address such issues as unemployment or opportunities that may allow homeowners and negative equity position to refinance, but homeowners will need to begin addressing these problems as soon as their inability to pay their mortgage arises so that these federal, servicer, and state foreclosure prevention plans can be more thoroughly explored and potentially help homeowners avoid foreclosure.