Bank of America Home Loan Modifications And Homeowners Defaults–Are Alternative Plans Helpful?

10/01/2010
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Home loan modifications from Bank of America have assisted homeowners who were on the verge of defaulting or who face foreclosure, but there have been concerns as of late over the number of homeowners who are still missing payments even when foreclosure prevention assistance options are in place. Home loan modifications have been made from the Making Home Affordable Program and, for Bank of America, increases in the number of permanent home loan modifications have been seen over recent months.

Also, Bank of America has been one of the mortgage servicers who has offered in-house modification plans for homeowners who may not qualify for the Making Home Affordable modification plan. Yet, there are reports which indicate that despite modifications being made available, homeowners are still defaulting during these assistance plans, which either lower interest rates, mortgage payments, or extend the life of a homeowner’s mortgage terms; all of which can lower home loan costs.

While in-house modifications are said to be helping more homeowners than those from the Making Home Affordable Program, there are reports that state more homeowners are defaulting from these private modifications than from the Making Home Affordable Program. While Bank of America homeowners are not the only ones struggling to continue making their mortgage payments within these modification programs, since numerous homeowners have had complaints concerning modifications from HAMP and private lenders, there are many who feel more needs to be done.

Since the Making Home Affordable modification plan is still seeing some success and private modifications are available to homeowners who may not qualify for the Obama modification program, it’s hoped that more individuals will find the foreclosure prevention assistance they need. Yet, if defaults continue many feel that changes in modifications will be necessary so that homeowners can avoid the loss of their home during these tough economic times.

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