Recent foreclosure suspensions by Bank of America have caused numerous questions to arise, one of which is why are home loan modification programs, and other assistance plans, not preventing such a high number of mortgage foreclosures? Homeowners are facing various troubles like unemployment and underwater home loans, but assistance plans have been implemented by servicers like Bank of America in order to combat these problems.
Mortgage relief plans for unemployed homeowners, homeowners with an underwater mortgage or a second lien, and traditional home loan modification plans from both the Making Home Affordable Program and private programs have all been offered to numerous individuals who are having difficulty meeting their monthly mortgage payments.
Homeowners who are simply unable to meet their mortgage obligations have benefited from modifications which offer lower interest rates, extended mortgage terms, or lower monthly payment obligations for homeowners who have seen a reduction in their income. However, there are still reports that homeowners are unable to meet their mortgage payments even when modification plans or alternative assistance is offered.
The foreclosure suspensions that have recently come to light are felt to be the result of a vast amount of foreclosure documents being processed by employees who are accused of signing these papers without a proper review. While no one would disagree that the individuals who did not follow proper foreclosure procedures are at fault, there is concern over the vast numbers of foreclosures that were being processed and the cause of such a high volume of documentation.
However, homeowners who are struggling to make their mortgage payments are still being advised to contact their servicer and consult resources like the Making Home Affordable Program in order to begin the home loan modification process or seek assistance through plans like the FHA short refinance program and extension assistance plans from HAMP.
Mortgage troubles for homeowners remain a problem across the nation, but despite foreclosure suspensions and documentation errors, there are still plans in place to aid homeowners who may be in a difficult financial time in their personal life. Bank of America, while they have been heavily criticized by homeowners, has seen increases in the number of assistance programs they have offered to homeowners over the past months and troubled homeowners presently still have opportunities to avoid the loss of their home through these foreclosure prevention efforts.