Homeowners with GMAC Mortgage who are behind on their payment decreased in data released from the Treasury Department indicating that homeowners who are delinquent and may qualify for HAMP assistance may be in a position where these mortgage payment plans that have reduced homeowner payment obligations could be helping more individuals, despite the fact that there have been calls for change. Obviously, not all homeowners who have transitioned from being delinquent on their home loan to a modification program has been successful but this does not necessarily mean that homeowners who are delinquent will not have some form of success from traditional modifications.
It was reported that between July and August in GMAC Mortgage saw a decrease in borrowers who were delinquent and potentially qualified for a federal modification program as 27,875 were seen in July but only 26,050 delinquent homeowners were reported in August. This is the most recent information we have here in November, but there are still calls by officials and some homeowners for the efforts of these mortgage servicers to improve as not enough homeowners have been helped, in the eyes of some, and this could be corrected if new benchmarks were set and servicers were held more accountable.
Currently, modification programs are voluntary and do not require that a servicer necessarily face a great deal of punishment if they are not successfully completing these plans, as the Treasury Department has withheld some incentives from servicers but, of course, since these programs are not required severe punishment or actions have not been used as there are concerns that these banks may be more unwilling to help homeowners through this particular avenue of mortgage assistance. Yet, mortgage servicers are still seeing improvements in the area of increases in active permanent modifications, but of course there are still those who feel more can be done.
GMAC Mortgage homeowners do have alternatives like state-specific plans, extension programs, or there may be some homeowners with these mortgage servicers who can take advantage of direct assistance specifically from their bank but all of these plans have had their problems as well. Understandably, not all homeowners who qualify for a mortgage assistance program will necessarily be able to afford their payments, will be able to benefit from the assistance plans in the long term as a homeowner’s financial position may deteriorate further, or of course there are some homeowners who simply struggle to qualify for some programs that are currently in place.
However, as there are some servicers like GMAC who are seeing decreases in delinquencies, it is hoped that continued efforts that are being made by these financial institutions will help homeowners even if changes are not made or new benchmarks set, as simple interest rate reductions, term extensions, and other techniques used by banks to help homeowners find more affordability, while they have not been helpful in all cases, do still potentially offer the foreclosure prevention that many homeowners seek.