Bank Of America And The Obama Home Loan Modification Program–Homeowners Still Face Problems

Bank of America President of Home Loans, Barbara Desoer, testified before the House Committee on Oversight and Government Reform on Thursday, June 24. This meeting was to flush out problems within the home loan modification program and ascertain exactly what lenders were doing to help homeowners in need. Many homeowners still face problems and are unable to pay their mortgage, so, representatives from large financial institutions participating in the Making Home Affordable Program were present to give more information on how their company is assisting homeowners.

While Bank of America has accomplishments of which they can be proud, Ms. Desoer stated that there were still challenges that Bank of America faced when providing the assistance many homeowners need. Homeowners have been complaining that lenders like Bank of America have not done all they can to help those who are in trouble and want to avoid foreclosure. Bank of America has seen increased success and the Making Home Affordable Program but this is of little consequence to those homeowners who are still struggling and those who have been denied a modification.

Ms. Desoer mentioned that Bank of America was working to help homeowners through not only the Making Home Affordable Program, but also, the Treasury’s Second Lien Program and through principal reduction options, among other forms of assistance. It was also stated by Ms. Desoer that the Treasury Department has indicated that about 470,000 Bank of America homeowners are potentially eligible for a modification and as of May 404,000 have gotten a trial modification offer.

It was also stated that homeowners who may not qualify for the Home Affordable Modification Program are being offered proprietary modifications from Bank of America, which have helped more than 560,000 homeowners. Those individuals who have been offered a trial modification are being asked for documentation before a trial period is begun so as to avoid any of the complications that have been experienced in the past.

Homeowners with Bank of America may also be able to find assistance if they simply cannot afford to stay in their home. Short Sales and Deeds In Lieu of Foreclosure programs have been offered to troubled homeowners, as well as, cash allotments for homeowners have been offered to help in the transition from a home to alternate living arrangements. Also, trouble with payments in the modification trial period were cited as another problem which Bank of America is combating.

While there are still homeowners in need of help and troubles to be sorted out, homeowners are still being advised to talk over mortgage assistance options with their mortgage lender or consult if they are having trouble meeting their monthly home loan payment. Lenders have a variety of assistance programs available to help homeowners make their home loan payment more affordable and avoid foreclosure.