For many Bank of America homeowners, home loan modifications have been sought out as a way to find the affordability and sustainability that they need in their monthly mortgage payment obligation so as to avoid foreclosure at the present time. Home loan modifications are not unique to Bank of America homeowners, as many individuals with a variety of mortgage servicers attempt to find mortgage assistance through home loan modifications made from the Making Home Affordable Program.
Yet, for some homeowners, these assistance plans were unhelpful and foreclosure alternative programs became their next target. Bank of America is one of the many mortgage servicers who participates in the Home Affordable Foreclosure Alternatives program by offering short sale opportunities and deed in lieu of foreclosure plans. Also, according to the October 2010 Making Home Affordable Report, Bank of America saw an increase in the number of these short sale and deed in lieu of foreclosure options which were made available to homeowners in need.
The September report from HAMP stated that, as of August, Bank of America had 20,656 homeowners in the process of acquiring either a short sale or deed in lieu of foreclosure option in cases where their trial modification was canceled. Yet, the October report showed that homeowners, as of September, numbered 32,396 who were pursuing foreclosure alternatives after having their trial plan canceled.
Data also shows that for this same time period homeowners who were not accepted for a trial modification had numbered 17,542 who were pursuing short sales or deed in lieu plans but that number increased, according to the October report, to 18,560.
While these foreclosure alternative plans are not a homeowner’s first choice in many cases, they do offer individuals who have been attempting to save their home, but were unsuccessful, the chance to avoid a formal foreclosure even though the loss of their home is inevitable. Some homeowners may have suddenly come upon a financially troubling time, where they were originally able to meet their mortgage obligation, or are having trouble related to an underwater mortgage, and for these homeowners foreclosure alternatives may be helpful.
Bank of America and other financial institutions who offer either short sales or deed in lieu of foreclosure programs have been able to help homeowners in these particular situations, but not everyone may qualify for these alternative plans. However, homeowners who are attempting to find affordability in their home but have come to the conclusion that foreclosure may be inevitable, are often prompted to talk with their servicer about these assistance programs which may help them avoid the foreclosure process, as this could be beneficial when it comes to reentering the housing market once a homeowner has found more stable ground.