Bank of America has been one of the top lenders in the Obama Home Affordable Modification Program and has placed them in a position where they can help many homeowners in their home loan by making their mortgage payments more affordable. Struggles that range from a loss in a home’s value to unemployment have caused many homeowners to face losing their home due to the inability to pay their monthly mortgage payments.
The Making Home Affordable Program was set in place in order to help homeowners after many individuals lost their jobs during the recession, lost value in their home, or simply saw their monthly income drop to a point where they no longer could afford their home loan payment. Aside from traditional home loan modifications, other mortgage assistance plans have been suggested and implemented by the Making Home Affordable Program.
For instance, Bank of America has been working with homeowners to not only prevent foreclosure on homes where the owner knows they can no longer afford their payment, but there is also principal reduction initiatives and second lien modifications on homes where there is a second mortgage that was causing a primary home loan modification to be unhelpful. Many lenders are using similar programs and have been implementing in-house assistance programs if a homeowner fails to meet the Making Home Affordable Program guidelines.
However, there have been many complaints against Bank of America and many other mortgage lenders who are participating in the Making Home Affordable Program. Homeowners have accused banks of not doing all they can to help homeowners get a more affordable home loan or avoid losing their home, and as a result a hearing in front of a congressional panel was recently held where top lenders in the modification program attended and defended their bank’s participation in these mortgage assistance plans.
Bank of America has seen an increase in the number of permanent home loan modifications they have made over the past months. The a report from the Making Home Affordable Program shows that Bank of America has made 62,969 permanent home loan modifications as of the month of May. While this is seen to be a good number by many, others believe there is room for improvement. Yet, homeowners who are struggling need to understand that there are options available, despite the fact that it may be a difficult road to obtaining mortgage assistance and some homeowners may not find the aid they seek.
Homeowners who are in need of some form of mortgage aid are often advised to contact their lender or consult the Making Home Affordable Programs website in order to get more information or assistance for their particular mortgage needs.