Many of the nation’s top lenders have been participating in the Making Home Affordable Program in order to provide home loan modification assistance to struggling homeowners. However, lenders like Bank of America are also using various forms of foreclosure prevention plans in order to help homeowners either obtain a more affordable home loan payment through programs outside of a traditional modification or help homeowners who simply can no longer afford to live in their home avoid going through the foreclosure process and transition from their home to alternate living arrangements.
Certain foreclosure prevention plans like deferment options, forbearance programs, or even home loan modifications, have been used in order to help homeowners who are struggling to make their mortgage payment do so in a more affordable manner. Some lenders simply extend the term of a homeowner’s mortgage, which can lower their monthly mortgage payments and, obviously, make their home more affordable. However, there have been many problems when it comes to home loan modifications, particularly when a second lien is involved. Bank of America has been one of the institutions who have been using a second lien modification program to help homeowners in this case.
However, homeowners who simply can no longer afford their mortgage payment even with some form of home loan assistance provided, have asked that foreclosure be avoided so that their credit score will not take such the hit that it would were a bank to proceed with a foreclosure. Some homeowners simply cannot longer afford their homes due to factors like unemployment or a loss in their home’s value, and for this reason options like short sales and deed in lieu of foreclosure programs have been used to help homeowners who simply cannot make their mortgage payment any longer but are willing to work with their lender to turn over their home.
Homeowners who are having trouble making their mortgage payment are often advised to contact their lender as soon as possible. There may be more options for preemptive action that can be taken so that the homeowner’s mortgage trouble will not get out of control. While there is no perfect lender and many homeowners have struggled to obtain forms of mortgage assistance, it’s still helpful for homeowner to talk with their lender, go over various assistance options, and pursue some form of mortgage assistance so that they can keep their home by making their mortgage payments more affordable.