Mortgage Modification Plans From Bank Of America–Are Home Loan Modifications Still Helping Homeowners?

Bank of America has been one of the top mortgage servicers participating in the Making Home Affordable Program over the past months and has offered troubled homeowners a lower monthly mortgage payment through modification efforts set in place by the Obama Administration. However, troubles remain between homeowners and mortgage servicers and the question of whether home loan modifications are still available has arisen.

While there are individuals who state that home loan modifications are unhelpful, unobtainable, and may not be in a homeowner’s best interest, mortgage servicers are still working within the Home Modification Program in order to provide mortgage aid to homeowners who face foreclosure. Bank of America has seen an increase in the number of permanent home loan modifications they have made over the past months and, for homeowners who have qualified, Bank of America has offered a more affordable mortgage payment while they struggle through difficult financial times.

Yet, animosity remains as many homeowners believe that mortgage modifications are only set in place to benefit banks who are looking to work through bad mortgages they may still hold. While it has been true that not all homeowners have obtained a modification and servicers like Bank of America have not been perfect in their implementation of the modification program, there are still assistance plans available to homeowners who cannot make their monthly mortgage payment.

Also, servicers like Bank of America have been offering in-house modification plans to homeowners who are denied a home loan modification through the Making Home Affordable Program. While there are those who would argue these in-house modification plans are not as cost-efficient for homeowners than a modification from the Obama Administration’s program, these alternate modification plans have helped many homeowners avoid foreclosure as well.

Again, mortgage servicers like Bank of America have come under criticism and have not made modifications for every homeowner who was in need. Bankruptcy and foreclosure have been the result for some homeowners who were denied a home loan modification, but with the Making Home Affordable Program still in place, alternative modification plans available, and extension plans that are hoped to help homeowners in situations where troubles like an underwater mortgage is present, it’s believed that more homeowners can find the mortgage assistance they need to save their home from foreclosure.