Bank of America has recently suspended foreclosures so that the validity of foreclosure documents can be assessed as questions have been raised as to whether certain servicers properly handled foreclosures in various states. While Bank of America has stopped foreclosure proceedings in all states, there is question as to whether the source of these difficulties leads to a more troubling problem.
While employees with Bank of America who did not properly review foreclosure documents carry a large part of the blame in these foreclosure suspensions, there are homeowners asking why so many documents were coming across the desk of these employees to make them simply sign foreclosure documents without any review. Understandably, foreclosure documents should have been properly reviewed in all cases, as losing a home is an incredibly difficult process for a homeowner and should be avoided at all costs.
Yet, homeowners are wondering if foreclosure prevention plans, like Bank of America’s home loan modification efforts through the Making Home Affordable Plan and private modifications are still helping homeowners get lower monthly mortgage payments. There are those who would argue that, since a large amount of foreclosures led to Bank of America employees not properly reviewing these documents, there are problems when it comes to affordability of modifications.
Homeowners are still at odds with various mortgage servicers and Bank of America has had to deal with its fair share of complaints and criticism. Yet, there are those who are concerned that mortgage modification programs may simply not be affordable for many homeowners that are facing troubles like unemployment. Bank of America, has seen increases in their home loan modification programs, both governmental and private, which suggests that homeowners are finding assistance from these plans.
Yet, servicers like Bank of America have also pointed out that homeowners still had trouble when it comes to meeting modification payments and there are those who still default despite being offered mortgage assistance. This has led many to ask whether changes and modifications need to be made or if servicers are to blame.
Again, many feel that due to factors like unemployment, home loan modification programs are simply unhelpful for homeowners since unemployed men and women cannot meet all of their financial obligations in most cases. However, there are those that argue mistakes made by various servicers often lead to denials of modifications or unjust foreclosures, so it’s hoped that this review process of these foreclosure proceedings can shed some light on where troubles may exist with and aid in future foreclosure prevention efforts.