Despite the fact that Bank of America has offered home loan modification programs to homeowners, there are still those who have trouble making their mortgage payment and eventually face the loss of their homes through foreclosure. Yet, reports indicate that Bank of America does offer foreclosure alternative programs like short sales and deed in lieu of foreclosure plans for homeowners who have not found the foreclosure prevention assistance they need.
According to the September Making Home Affordable servicer report, Bank of America has made over 20,000 short sale or deed in lieu of foreclosure agreements, as of August 2010, for homeowners who had their trial modification canceled. The same report indicates that over 17,000 homeowners who were not accepted for a trial modification also received either a short sale or deed in lieu of foreclosure plan from Bank of America as well.
Understandably, homeowners would rather find an affordable solution which will allow them to keep their home and avoid the foreclosure process altogether. While Bank of America has modification programs available and alternative assistance plans, there are some homeowners who are simply unable to take advantage of these options or are facing an unemployment situation that simply will not allow them to stay in their home.
Obviously, in a short sale or deed in lieu of foreclosure is a last resort for many homeowners, but these plans may allow homeowners to get back on their feet faster as they can be seen in a more favorable light by future lenders and may do less damage to a homeowner’s credit score than the formal foreclosure process or defaulting on a home loan.