The Obama Administration extended the home loan modification program for lenders like Bank of America in the hopes that homeowners with an underwater mortgage and who are suffering from unemployment will now have more options in terms of mortgage assistance.
Unemployed homeowners may be able to get a reduction in their monthly mortgage payment or get forbearance for their payment entirely for a number of months. Unemployment still has many homeowners looking for aid when it comes to paying their mortgage, as there are many unemployed or underemployed homeowners out there but not yet enough jobs to accommodate them.
Underwater homeowners are looking for principal reductions in their mortgage as many have seen the value of their home drop substantially below what they owe on their mortgage, which puts them in the troubling situation of paying more on a home than it’s worth and possibly facing a home value that will not rise to a profitable point for years.
These new expanded programs are part of the home loan modification program as a whole and are hoped to extend aid to these new forms of troubled homeowners. While the modification program has had its problems, Bank of America homeowners, as well as homeowners with other lenders, should be aware these options are available.