Bank Of America Home Loan Modification Program–Are Foreclosures Still A Problem And Do Homeowners Have Alternative Options?

Foreclosures are still a problem for many homeowners with mortgage servicers like Bank of America despite home loan modification programs being made available. Bank of America has been one of the top mortgage servicers in the Making Home Affordable home loan modification program but despite these foreclosure prevention efforts there are many homeowners who are still facing the loss of their home as a result of their financial difficulties.

The August 2010 Making Home Affordable servicer report indicates that homeowners with Bank of America who have been denied a permanent home loan modification or a trial modification have increased in number of those who have seen their home enter foreclosure. The August report states that Bank of America has 6,261 foreclosure completions, through July of 2010.This number is up from the previous month which had Bank of America foreclosure completions at 2,310.

While recent news indicates that Bank of America has stopped foreclosure proceedings in some states in order to review their validity, foreclosures remain a problem for many and will likely be a problem for some in the near future. Economic troubles like unemployment continue to be a driving cause behind housing troubles and have necessitated that mortgage servicers create more plans that may help homeowners avoid the foreclosure process.

Bank of America is said to be one of the mortgage servicers who offers alternative home loan modification plans for individuals who may be disqualified from or unable to benefit from the Making Home Affordable Program. While there are complaints that these in-house modifications are not as low-cost as those from the governmental modification plan, more homeowners are reported to have gotten a home loan modification from private financial institutions than from the Obama Administration’s modification plan.

Also, certain foreclosure alternative programs like deed in lieu of foreclosure plans have allowed homeowners who face the inevitable loss of their home to avoid the foreclosure process, homeowners are calling for more action to be taken so that fewer individuals will lose their home. Yet, until the employment situation and our nation improves, servicers like Bank of America can only attempt to find affordable modification options for homeowners through either private assistance plans or the Home Affordable plan, in the hopes that homeowners can meet their mortgage payments at the present time.