Some Bank of America homeowners who have attempted to gain mortgage assistance through a home loan modification from the Obama Making Home Affordable Program have moved into bankruptcy after being denied help with their home. Bank of America has seen an increase in the number of permanent home loan modifications they have made from month to month but there are instances where homeowners have been denied a trial modification or had their modification canceled.
It was reported by the Making Home Affordable servicer performance report that, for July, Bank of America had 2,307 homeowners who were in the bankruptcy process after not being accepted for a trial modification plan on their home loan. Also, 2,383 homeowners who had there trial modification canceled were also struggling as they too entered bankruptcy.
While these numbers are only through June 2010, there are homeowners who feel that more needs to be done so that mortgage assistance plans may be available to a wider variety of homeowners. Bank of America does offer alternative modification plans, payment arrangements outside of the modification program, and also participates in foreclosure prevention and alternative efforts from both the Obama Making Home Affordable Program and in-house efforts.
What many homeowners are concerned over is the slow economy and the fact that more homeowners are finding it difficult to meet their mortgage payments. Many believe that until mortgage solutions are presented that are affordable on a wide range of homes or employment opportunities begin to improve, continued housing troubles will remain a problem for both lenders and homeowners.
Bankruptcy has been a way that some homeowners have been able to save their home since it can stop the foreclosure process, but homeowners obviously want to avoid avenues such as bankruptcy or foreclosure by using modification plans. There are more options available for home loan assistance outside of the modification program, but sadly, there is likely to be continued trouble for certain homeowners until economic and employment conditions improve.