Bank of America saw a decrease in the number of trial modifications which are currently active, according to Making Home Affordable reports from August to September. While many see this as a sign of either modifications beginning to slow or servicers not offering homeowners the opportunities they may need through modifications, there are some who feel that homeowners are simply not qualifying for these types of programs.
Yet, Bank of America homeowners do have alternative assistance plans from not only the Making Home Affordable Program, but mortgage servicers as well. While there have been reports that home loan modifications from in-house plans made directly from servicers have been more helpful to homeowners than the Obama Modification Program, homeowners may also take advantage of extension plans from HAMP.
Overall, home loan modifications did increase from September to August, but some servicers, like Bank of America, did see a drop in permanent modifications as well. However, despite homeowner accusations, some feel servicers are not to blame for these cancellations in permanent modifications or low numbers for trials as many homeowners are simply unable to meet the payments associated with these mortgage assistance programs.
Bank of America, however, does participate in extension plans like the Second Lien Modification Program, which may be helpful for homeowners who are not finding the affordability they seek within a modification program. While there are some homeowners who are simply in too dire of a situation for these modification programs to help, Bank of America and other servicers do still offer these modifications from both governmental and proprietary plans.
While not all homeowners have benefited from modifications or will find the assistance to prevent the loss of their home in every case, advisers are still suggesting that homeowners contact their servicer as soon as financial troubles arise, in order to give them a better opportunity at finding affordable mortgage payment options so they can avoid the loss of their home.