Bank of America has been one of the major mortgage servicers to participate in the Making Home Affordable modification program, but there are questions as to whether homeowners who are in the modification program are getting assistance from either servicers or the program in general. Numerous financial institutions, with Bank of America being one of them, have seen increases in the number of permanent home loan modifications they made each month, yet there are still complaints from homeowners concerning these modification initiatives and the servicers.
There are homeowners who believe that there are few incentives for banks to offer home loan assistance, and as a result many feel that these financial institutions are not making assistance plans as accessible as they should. Yet, there are varying opinions on home loan modifications in general, which have led to a great deal of debate on the issue.
Again, servicers like Bank of America have implemented modification plans for numerous homeowners, but many feel that the original goal which was set has not been met and, obviously, someone must be to blame. Recently, the Congressional Oversight Panel stated that they feel lackluster results have been seen in the modification program as the number of permanent home loan modifications which are being made by the numerous servicers in the program are beginning to slow as redefaults are increasing.
Obviously, homeowners are still having trouble related to factors like unemployment and, for financial institutions like Bank of America, this has been problematic as homeowners have simply been unable to meet mortgage payments even when a modification is in place. They’re also concerned that homeowners are not qualifying for the program, as there have been numerous complaints against various banks, but some homeowners simply do not meet federal qualifications.
There’s also the problem that is being seen when homeowners who have been in the program for extended periods of time begin defaulting, meaning that some are having sustainability problems in their new mortgage payment situation. Yet, proprietary modifications have resulted from the federal modification program and these in-house assistance options from servicers like Bank of America and numerous other major institutions are said to be outpacing federal mortgage assistance, which many view in a positive light.
While there are many who feel work needs to be done in order to provide sustainability and federal modification programs to allow more homeowners to find the mortgage modification assistance they seek, homeowners do still have the opportunity for a home loan modification in December 2010 and in 2011. Ongoing home loan modifications are hoped to provide more relief to homeowners, but again, restructuring of qualifications in the modification program in general may be needed and unemployment may need to decrease before more results are seen.