Bank of America Home Loan Modification Plans–Are They Preventing Foreclosure On Mortgages?

Questions over foreclosure proceedings from Bank of America have recently been in the news and, as a result, concerns over whether assistance programs like the Making Home Affordable modification program have actually helped homeowners prevent the loss of their home have also arisen. Bank of America is one of the servicers who has seen increases and success in modifications that range from governmental plans to private home loan modification assistance options.

Yet, numerous foreclosures have caused a great deal of trouble for homeowners across the nation and, according to reports from the Making Home Affordable Program, Bank of America had 22,278 foreclosure starts from homeowners not accepted for a HAMP trial modification through the month of July 2010. Factors like unemployment do attribute to the inability of some homeowners to make mortgage payments, but there is concern as to whether more can be done on the part of servicers to help homeowners in need.

Concerns about foreclosure documentation from servicers like Bank of America, Chase, and GMAC Mortgage have called for the suspension of foreclosures in certain states. However, there are those who feel that these foreclosures which may be in question will most likely turn out to be justly processed, despite questions over whether they were reviewed correctly. Essentially, there is the opinion that most of the homes that were repossessed will reveal themselves to have met the criteria for foreclosure, but this raises more questions if it is the case.

While the home loan modification program from Bank of America has seen success and private modifications continue to be offered for homeowners who may not qualify for the governmental modification plan, homeowners who may be attempting to prevent foreclosure on their home are questioning whether these modification plans are substantial enough to help avoid foreclosure or if changes need to be made on the part of mortgage services.

Various home loan modification and foreclosure prevention programs are in place but some homeowners feel that with such a wide range of foreclosures occurring and difficulties concerning foreclosure proceedings and documents having arisen, a closer look needs to be taken at not only foreclosure proceedings but whether these homeowners could have benefited from a home loan modification or some other form of mortgage payment reduction assistance.