Bank Of America Home Loan Mortgage Modification Plans–Is Foreclosure Still A Problem For Distressed Homeowners?

Homeowners who have a Bank of America home loan and have been seeking assistance through mortgage modification plans have still had troubles when it comes to avoiding foreclosure. While lenders like Bank of America have seen increases in the number of permanent home loan modifications they have made over the past months, there are still homeowners who are losing their homes to foreclosure and not getting the assistance they need.

For instance, according to the June 2010 Making Home Affordable Program report, 192 Bank of America homeowners have faced foreclosure when their trial modification was canceled. Also, according to the same report, which gives data through the month of May, 2,440 homeowners have begun the foreclosure process when having their trial modification canceled. There are also 1,097 homeowners from Bank of America who have gone through the foreclosure process when they were denied a trial modification, while 13,588 homeowners have begun the foreclosure process after, again, being rejected from a trial modification.

While many homeowners see this as evidence that lenders can be doing more, there are in-house programs and foreclosure prevention plans that have also been used by Bank of America, among other lenders, to help homeowners who can no longer afford their home loan payment after mortgage assistance is offered or who simply do not qualify for a modification. Bank of America has participated in alternative mortgage assistance plans, short sale programs, and offers deed in lieu of foreclosure plans to homeowners who do not benefit from a traditional modification.

Homeowners with Bank of America who may be struggling to make their home loan payment are still being advised to contact their mortgage service or to ask about assistance options that may be available for their personal financial situation. While not all homeowners are going to find the assistance they need, there are now more than ever more mortgage assistance options available to homeowners who are in trouble and facing foreclosure.

There are homeowners who greatly dislike mortgage lenders and believe that many of these servicers do not have homeowners’ best interests at heart when offering mortgage assistance plans, so these homeowners can also consult the Making Home Affordable website or hotline, as well as a housing counselor that is approved by the Department of Housing and Urban Development.