With many homeowners struggling to make their mortgage payment from month to month the home loan modification program has been a way that numerous homeowners have been able to obtain a more affordable monthly mortgage payment, which obviously allowed them to keep their home. Yet, Bank of America, one of the top mortgage servicers in the Making Home Affordable Program, has come under criticism by many homeowners who say that the big lenders in the Modification Program are unconcerned with helping homeowners obtain the assistance they need.
Homeowners who are troubled with Bank of America, and other lenders as well, cite the fact that many are not only being denied a permanent home loan modification but are unable to obtain a trial modification as well. In the Making Home Affordable Report for June 2010, numbers through the month of May for homeowners who were denied a trial modification from Bank of America state that a total of 66,393 homeowners were denied a modification trial period.
Yet, Bank of America has offered alternative modification plans for 8,729 homeowners who were denied a trial modification, as well as, 8,768 short sale or deed in lieu of foreclosure programs for homeowners. It was also reported, as of May, 1,922 homeowners are now current on their home loan after being denied a trial home loan modification.
While these numbers point to positive results for those who were denied a modification trial period, and may give hope to homeowners who were denied a permanent home loan modification, many believe that more needs to be done. Homeowners who are not being assisted through a mortgage aid program do, in some cases, have stories where they seemingly qualified for a modification, but were denied for reasons unknown.
On the other hand, the total number of homeowners who were given an alternative modification plan from Bank of America comes to 29,293 when numbers for homeowners who were denied either a permanent home loan modification or trial modification are combined. Yet, there are still homeowners facing the loss of their home and feel that the mortgage servicers in HAMP can do more to help those in need.
While there are options for homeowners who may be troubled in their mortgage, tension between lenders and homeowners remain. However, homeowners are still advised to talk to their mortgage lender if they are having trouble making their home loan payments. Not all homeowners will qualify for or be granted a modification, but there are more and more mortgage assistance plans being offered from month to month, so homeowners are advised to explore all their options with their lender or consult the Making Home Affordable website for more information on working with lenders.