Alternative foreclosure prevention programs like proprietary modifications have been made from servicers like Bank of America over the past months as a way to assist homeowners who may have been unaided by the federal mortgage modification program. Homeowners who have seen alternative modifications have, in many cases, benefited from lower interest rates, term extensions, or there have been some instances of principal reductions reported, all of which were meant to provide sustainability and affordability for homeowners.
However, despite the fact that there are reports that indicate proprietary, in-house modifications are being made at a greater rate an federal mortgage assistance plans, there are still homeowners who feel than these mortgage modification alternatives need to be made more widely available to homeowners in need. As an example, 41,397 homeowners who had their trial modification canceled within the Making Home Affordable Program with Bank of America were in the process of an alternative modification as of the September 2010 Making Home Affordable report.
Yet, homeowners in the same category with Bank of America saw a drop in the number of alternative modifications as 40,025 homeowners were reported to be in the process of an alternative modification, as of the October 2010 Making Home Affordable Report. While this is a small sampling of homeowners who may have received an alternative modification, there are homeowners who still feel that modification efforts by major mortgage servicers need to be revamped in order to help a wider number of homeowners.
While there have been no perfect modification programs and mortgage servicers have made mistakes in some cases, there are still federal and in-house modification programs available to homeowners who qualify and maybe in need of foreclosure prevention assistance. Homeowners are still being prompted to contact their mortgage service or if they feel that meeting their monthly mortgage requirement is beyond their means at the present time and they may face foreclosure if assistance is not granted.
Modifications and other mortgage assistance plans are no guarantee when it comes to helping homeowners avoid the loss of their home, but with these mortgage modification programs available from various sources and extension programs to address issues like unemployment or underwater mortgages in place, it’s hoped that more homeowners will see foreclosure prevention assistance which will allow them to avoid the loss of their home in the coming months.