Bank of America homeowners who may face an inevitable foreclosure have been turning to alternative programs, like short sales and deed in lieu of foreclosure plans as a way to avoid the foreclosure process and be free of a difficult mortgage situation. While there have been problems that have arisen for homeowners due to a variety of factors, some individuals who have been able to successfully use the foreclosure alternative programs with servicers like Bank of America have been able to alleviate themselves of the remainder of their mortgage debt.
While these foreclosure alternatives may not be available for every homeowner, they have been set in place to aid individuals who have suddenly come upon a difficult financial position in their life and are simply unable to continue meeting their monthly mortgage payment. There have been some concerns from servicers like Bank of America as some homeowners have simply attempted to either short sell their home or use a deed in lieu of foreclosure program as a way to escape a mortgage obligation in cases where factors like an underwater mortgage is present.
However, certain servicers do still participate in the short sale and deed in lieu of foreclosure plans, but they may not be used in all situations where foreclosure is inevitable. Yet, the Making Home Affordable servicer report for September 2010 indicated that Bank of America has made over 20,000 of these programs available to homeowners who had their trial modification canceled and over 17,000 foreclosure alternative plans to homeowners who were simply not accepted for a trial modification.
Homeowners who may be struggling from an underwater mortgage and do not qualify for other assistance plans, like underwater refinancing opportunities, may be able to work with servicers like Bank of America to find a foreclosure alternative plan which will allow them to avoid the loss of their home through a foreclosure proceeding. Again, not every financial institution may be granting a high number of these alternative programs, but homeowners have still seen assistance through short sales and deed in lieu of foreclosure plans over the past months and these programs are ongoing to provide help for homeowners who qualify.