Delinquency on mortgage payments has increased for numerous homeowners with a variety of mortgage servicers, according to the Making Home Affordable servicer reports which have been released by the Treasury Department each month. While the problems with each servicer will vary, Bank of America is one of the financial institutions that has seen an increase in homeowner delinquency, in cases where homeowners have gotten behind on their payments for 60 days or more.
Understandably, factors that result in homeowner delinquency remain in place, as unemployment, underemployment, or underwater mortgages have caused a great deal of trouble in the financial lives of many homeowners. Obviously, countless homeowners who are in one of these troubling situations have turned to home loan modifications in order to get a more affordable monthly payment on their home loan until their financial situation improves.
Yet, slow economic recovery and a weak job market have attributed to homeowners being unsuccessful at improving their personal financial situation. As an example, Bank of America had 375,168 delinquent homeowners, which again were 60 days or more behind on their payments, as of August 2010. Reports from the following month showed that, for the month of September, Bank of America saw an increase to 425,093 homeowners who were delinquent on their mortgage.
While there have been some success stories from these financial institutions concerning permanent federal home loan modifications, there are critics who say that more efforts need to be made on the part of the banks to offer sustainable mortgage modification payments at the present time. If homeowner delinquencies continue to rise and troubles remain in the home modification sector, the housing market is feared to either continue a slow recovery or face troubles once again.
On a positive note, some have pointed to the fact that in-house, alternative home loan modifications are being offered at a greater rate than federal home loan assistance plans, so homeowners may be getting outside assistance to help them avoid the loss of their home. While there are conflicting reports and opinions on the modification program, many feel that homeowners are being accepted into modification programs at a smaller number than foreclosures which are being completed.
Despite troubles that remain and problems with foreclosures that are still persistent, homeowners do have home loan modification options from various servicers, like Bank of America, and are being advised to still consult their primary servicer or resources like the HUD-approved housing counselors who may be able to guide homeowners through a troubling time when dealing with their mortgage difficulties.