Bank Of America Trial Home Loan Modifications–Are Homeowners Having Trouble With Modification Payments?

Bank of America has been one of the top mortgage servicers in the Making Home Affordable Program over the past months and they have seen the number of permanent modifications they have made increase as well. However, there are many angry homeowners who point to the fact that there are numerous individuals who are being denied modification assistance and are either denied a trial modification or have their trial modification canceled.

In the July 2010 Making Home Affordable servicer report it is stated that, as of the report’s release, Bank of America had started 312,318 trial modifications but currently have 84,741 active trial modifications. While some of these trial modifications did move into a permanent modification status and others are homeowners who were able to regain a firm financial ground and no longer needed assistance, there are still homeowners who believe that cancellations are too numerous in the modification program.

Bank of America homeowners who had their trial modification canceled are reported to number around 114,989. These homeowners who had their trial modification canceled are either seeking an alternative modification, face foreclosure, are in the process of bankruptcy, or have been offered another mortgage payment solution. Also, homeowners who were not accepted into a trial modification plan number 69,029 and, again, are in the process of an alternative mortgage assistance plan, bankruptcy, or foreclosure.

While these numbers of homeowners who either had their trial modification canceled or were not offered a trial do include those homeowners who are current on their home loan, there are many who believe that the number of homeowners who are either facing foreclosure, bankruptcy, or are still simply struggling point to the fact that either the modification program is unhelpful for homeowners in a dire situation or mortgage servicers are not implementing this assistance plan properly.

There have been alternative mortgage modification plans offered directly from mortgage servicers like Bank of America but many homeowners feel that more efforts need to be made to give homeowners assistance through the Making Home Affordable Program, which may be more cost-efficient for certain troubled homeowners.