Bank of America has been one of the top participants in the home loan modification program, which has been set in place to help homeowners who are struggling with their mortgage payment and in need of mortgage assistance through a more affordable home. Yet, out of the mortgage troubles that have faced our nation, some homeowners simply are unable to continue owning their home and have asked to avoid foreclosure.
Many lenders are working with homeowners to enact certain foreclosure prevention assistance plans which will help homeowners get out of their mortgage without having to face foreclosure. These programs like a deed in lieu of foreclosure plan and short sale options have been made available to homeowners who may be unable to handle their mortgage or, where a mortgage is underwater, may simply need a way out.
Homeowners are still reeling from financial troubles that were brought on by the recession and since the economy and job market have yet to return to their full strength many homeowners have come to the realization that even with a home loan modification they cannot afford their mortgage payment. If these foreclosure prevention programs were not set in place the vast majority if not all of homeowners in this situation would be facing foreclosure and banks would suffer as well.
It’s for this reason that Bank of America and many other lenders in the Making Home Affordable Program are using the deed in lieu of foreclosure programs or working with homeowners to short sell an underwater home. It’s hoped that by allowing homeowners these forms of assistance, along with cash allotments from some lenders, homeowners are able to both avoid the process of foreclosure and find help when it comes to relocating to a new living arrangement.