Here at the end of October homeowners with GMAC Mortgage who are pursuing a trial modification may benefit from this particular course of action but there are still issues that many homeowners have had with a variety of servicers in the area of acquiring a trial modification plan. Yet, when we look at the total number of trial modification plans that GMAC Mortgage has offered, as well as the number of these plans that have been started, we have seen that information released here in October showing areas of improvement in these specific sections of the modification program and may potentially bode well for future homeowners who are struggling to make ends meet.
GMAC Mortgage did see an increase in the number of trial plans that were extended between July and August as the cumulative total of these plans increased from 76,003 to 77,361. Furthermore, the total number of trial modifications started within HAMP increased from 62,897 to 63,734, of which is once again an increase between July and August according to the most recent Treasury Department reports.
While there are some homeowners who still continue to have problems in not only the modification program but when dealing with their servicer, there have been calls as of late for the Treasury Department to change how it works with servicers and deals with problems, as some want more incentives to be withheld and more benchmarks to be set and required to be met by banks in the hopes that more modification plans will be made available. There are some issues that may fall into the laps of homeowners, when it comes to problems with the modification program, but these calls for continued changes are coming at a time where there are still homeowners having trouble meeting their mortgage payment obligation but may feel that this particular course of action will be unhelpful.
Homeowners and servicers have both made mistakes, but these calls by officials for changes and further intervention by the Treasury Department want more of these banks to be held accountable for lackluster performances, would hopefully set up a situation where more homeowners would successfully see modification results in a positive way, and hopefully a greater number of homeowners will be helped before the end of the program next year. While there are almost 700,000 active permanent modifications in place, there are many who point out that the original goal was to help millions of homeowners, which is unlikely to be reached even if these proposed changes or benchmarks were implemented so that servicers would be able to more efficiently process and service these modifications.
Yet, when it comes to homeowners who are pursuing a trial modification with GMAC Mortgage or any other servicer, consulting with their servicer or housing counselors may be beneficial when it comes to homeowners avoiding mistakes on their part that could hinder or cause problems in their modification plan, as again, some homeowners may have improperly applied to the program or submitted documentation incorrectly, but there is guidance that can help reduce homeowner error in some cases and this is hoped to lead to more success in the future as well.