Federal Modification Assistance From Bank Of America Home Loan Modification Program–Trial Modifications

Federal modification programs have been used by homeowners over the past months as a way to prevent foreclosure through various means that offer more affordability for those who are struggling.  Bank of America is one of the major mortgage servicers that offers these home loan modification plans to homeowners facing the loss of their home, but there have been troubles between homeowners and the various servicers participating in HAMP.

One area of contention is trial modifications as homeowners are reporting that not only is receiving a trial modification plan difficult in some cases, but getting through the trial plan is a difficult task as well.  For Bank of America, there was a decrease in the number of active trial modifications from reports released by the Treasury Department and the Making Home affordable program for the months of September to October.

According to the report, Bank of America had 62,360 active trial modifications as of September 30th, but that number dropped to 49,470 active trials for the month ending in October. Since Bank of America was not the only mortgage servicer to see a decrease in the number of trial modifications, there are homeowners who feel that more must be done to help homeowners achieve a permanent home loan assistance plan.

However, the world of home loan assistance, especially from federal modifications and bank-direct plans, is somewhat complex, but homeowners who are having trouble in one area may find assistance in another.  As an example, Bank of America is one of many mortgage institutions who offers in-house, alternative modification plans for homeowners, who may not qualify for a modification from the federal mortgage modification program.

While there are increases being seen within the Making Home Affordable Program, more homeowners are said to be receiving assistance from proprietary modifications than from federal assistance.  It’s true that no mortgage servicer has been perfect in their implementation of these programs and homeowners are still facing foreclosure as a result, but homeowners are still being advised to begin working with their mortgage servicer as soon as mortgage troubles arise.

Modification programs, while they may be more available now than earlier in the year, are no guarantee to foreclosure prevention, but homeowners who begin seeking assistance before their mortgage troubles get out of hand may stand a better chance at finding either foreclosure prevention programs that will be beneficial for their situation or they may have foreclosure alternative options if the loss of their home cannot be avoided.