Homeowners with Bank of America may be able to take advantage of new programs that are extensions of the home loan modification program, from the Obama Administration. Underwater mortgages and unemployment have caused trouble for many homeowners over the last few months and it is hoped these programs will remedy those problems.
Underwater mortgages, where homeowners owe more on their home than their home is worth, have caused some homeowners to grow so angry that they simply walk away from their home altogether. This is not only detrimental to homeowners but to banks and the housing market as well.
Principal reductions plans commonly work by having a homeowner continue paying on their mortgage as lenders reduce the principal amount owed over time.
Unemployment on the other hand causes more trouble, as there is little or no income in which a homeowner can use to pay their mortgage. Forbearance programs are expected to help homeowners by relieving the strain of a mortgage payment for a few months in the hopes that homeowners can either build up their finances or find a buyer for their home.
While not all lenders are on board with these programs, lenders like Bank of America are providing assistance to homeowners that are struggling in their mortgages, but there have been problems. However, homeowners are still being advised to talk to their lender to find out what assistance options are available.