Bank of America Home Loan Modification Program–What Methods Are Servicers Using To Lower Mortgage Payments?

Homeowners with servicers like Bank of America are continuing to see a need for a home loan modification assistance to lower their monthly mortgage payments. Yet, the methods that many mortgage servicers have been using tend to vary and may offer homeowners different options when it comes to not only the way their modification is implemented, but the type of modification program that may be available.

While Bank of America is only one of the many financial institutions who have been participating in the Making Home Affordable Program, reports indicate that many of the servicers who are assisting homeowners through the governmental modification program are using a combination of interest rate reductions, home loan term extensions, and in certain cases, principal rate reductions. These methods have helped many homeowners find affordability in their mortgage, but Bank of America homeowners may have alternative options as well.

It was recently reported that Bank of America modified 25,000 mortgages in the month of October, which was an increase from the previous month. However, many of these mortgage modifications were said to be from Bank of America’s in-house home loan modification program. Many financial institutions who are participating in the governmental modification plan are also using proprietary home loan modification efforts as a way to offer more options to homeowners in need.

Some homeowners have had a great deal of difficulty when it comes to working with their mortgage servicer and, as a result, both governmental modification programs and in-house mortgage assistance initiatives directly from servicers have seen their share of failures and criticism. However, more homeowners are said to be offered mortgage assistance plans through these proprietary modifications than from the governmental home loan assistance program.

While no home loan modification program has been perfect, and servicers have had their fair share of difficulties as well, homeowners are still being advised to contact their servicer if they are having trouble meeting their monthly mortgage payment obligation. Obviously, not every homeowner may benefit from a mortgage assistance modification from servicers like Bank of America, as there are still foreclosures being seen across the nation.

Yet, with more servicers attempting to improve their home loan modification at first, homeowners with financial institutions like Bank of America do still have multiple options for making their home loan payment more affordable through efforts like in-house alternative modifications, the Making Home Affordable modification plan, and even extension programs which are also offered through HAMP to address specific homeowner troubles.