Bank of America homeowners have been struggling with their mortgage payments over the past few months, which is a common trouble among homeowners with a variety of lenders in our nation. It’s for this reason that the Obama Administration created the Making Home Affordable Program to help combat these mortgage difficulties. Bank of America is one of the top lenders in the Home Affordable Program and as a result is in a position to offer many homeowners various assistance plans to help with the mortgage problems.
Traditional home loan modifications have been quite common over the past months and the number of permanent home loan modifications that have been made are on the rise. However, there have been troubles for homeowners and lenders in the Making Home Affordable Program, so alternatives and supplements to the modification program have been proposed to give homeowners more opportunities when getting a more affordable home loan and avoiding foreclosure.
One example is the Second Lien Modification Program, which has been set in place to help homeowners who have a second lien on their home loan and are not benefiting from a traditional modification. Second mortgages, when they were not modified, cause a primary mortgage modification to be of little assistance due to the fact that a homeowner’s mortgage payment was still unaffordable.
Also, an upcoming assistance program called the Home Affordable Unemployment Program has been proposed to offer homeowners either a forbearance on their home loan if they are unemployed or lower their monthly mortgage payment to no more than 31% of their monthly income. While the job market struggles to recover, this assistance program is hope to help those homeowners who have lost their job or have seen their household income cut.
Dealing with underwater mortgages has also been a goal of the Making Home Affordable Program as lenders have been prompted to make principal reductions, or homeowners who have a home loan with Fannie Mae or Freddie Mac may qualify for underwater mortgage refinancing. Also, short sale options and deed in lieu of foreclosure plans have been used to help homeowners who are either asking to be relieved of their underwater mortgage obligation or who simply can no longer afford their home loan payment but wish to avoid foreclosure.
While these programs and lenders who are implementing these plans are not perfect, homeowners are still advised to talk with their mortgage lender and consult the Making Home Affordable website for more information concerning home loan assistance plans and their personal mortgage situation.