Bank Of America Home Loan Modification Program–Are More Homeowners Seeing Permanent Modifications?

Bank of America is one of the top participants in the Making Home Affordable home loan modification program that has been set in place by the Obama Administration to help homeowners who are struggling to make their home loan mortgage payments. However, lenders have come under a great deal of criticism and many homeowners, as well as government officials, have questioned whether these top lenders in the modification program are actually trying to move homeowners into permanent home loan modifications or offer them foreclosure prevention assistance.

Obviously, lenders are pointing to the numbers and showing that, despite not being at a level that many had hoped for, there are results and improvements being made in the modification program.  Reports from financialstability.gov are set to be released in the coming days before the performance of these lending institutions in the modification program for the month of June. However, many have said that lenders like Bank of America, along with the other top mortgage companies and the Making Home Affordable Program have a long way to go before the initial goal of the modification program is met.

For instance, according to the Making Home Affordable reports, Bank of America had made 62,969 permanent home loan modifications through the month of May. This number is up from 56,398 for the month of April, and predictions are that there will be a rise in the number of permanent home loan modifications for June as well. Yet, many individuals point out that the total number of eligible homeowners who may qualify for a modification are far greater than the number of homeowners who have actually gotten this type of assistance.

Again, according to the Making Home Affordable reports, Bank of America has 478,811 estimated homeowners who are delinquent, as of the month of May, and might qualify for a home loan modification. However, Bank of America has stated that some homeowners are not going through the proper channels to obtain these modifications and others simply do not qualify. Bank of America officials have stated that they are offering other programs and assistance plans outside of a traditional home loan modification through extensions of the Making Home Affordable modification program, like the Second Lien Modification Program, as well as in-house assistance plans from Bank of America.

While it’s understandable that homeowners are frustrated and in need of some form of mortgage assistance, homeowners need to be aware that there are modification programs still available as well as foreclosure prevention plans, like the Deed-In-Lieu of Foreclosure option that can help homeowners avoid foreclosure or get a more affordable home loan. Any homeowner who has begun to have troubles in their home loan is advised to first contact their home loan lender or consult the Making Home Affordable Program’s website for alternative assistance when seeking mortgage aid.