While there are mixed reports about the condition of our economy and job market, there are still numerous homeowners who are seeking ways in which they can make their home loan more affordable. Customers with a Bank of America home loan have been attempting to avoid foreclosure by obtaining a permanent home loan modification through the Making Home Affordable Program.
There have been increases in the number of permanent home loan modifications made from month-to-month by Bank of America but there are still homeowners who are facing foreclosure. However, not all homeowners are going to qualify for a home loan modification or can afford to stay in their home even when mortgage assistance is in place.
Yet, foreclosure is still a trouble homeowners are facing as many are having their trial modification canceled or are being completely denied a trial through the Making Home Affordable Program. For instance, the July report from the Making Home Affordable Program stated that Bank of America had started a total of 3,564 foreclosures, through June 2010, and had completed 824 foreclosures during that time period. These numbers are from foreclosures related to homeowners who had their trial modification canceled and are up from the June 2010 report, which tracked data through the month of May. As of the June report, Bank of America had only started 2,440 foreclosures and had only completed 192.
Some may say that these numbers are only a small percentage of homeowners out of the total who are seeking assistance but there are also homeowners who were not accepted into a trial modification who have also faced foreclosure with Bank of America. The July 2010 HAMP report indicates that, through June 2010, Bank of America had 16,686 foreclosure starts and completed 2,310 foreclosures for homeowners who were not given a trial modification.
While there are homeowners who simply do not qualify for a home loan modification for reasons ranging from improper documentation, defaulting while in a trial period, having a debt to income ratio that is too low, or cases where homeowners are simply not in immediate danger of defaulting on their home loan, there are still many homeowners who feel more needs to be done.
It’s understandable that homeowners are troubled by the number of foreclosures that they are seeing from various servicers, but Bank of America has also offered in-house assistance plans in the form of alternative modifications and reduced payment plans. Homeowners can consult sources like the Making Home Affordable website and Hotline, with the possibility of working with an FHA-approved housing counselor, but there may also be additional aid from lenders themselves. While not all homeowners have had a successful experience in the modification program, there are extension programs and aid from mortgage servicers in some cases they can also help a homeowner avoid foreclosure.