Increases in the number of permanent home loan modifications have been seen in Bank of America’s home loan modification program, which is a part of the Making Home Affordable Program. There have been homeowners who have been greatly helped by a modification efforts from financial institutions like Bank of America, yet there are still problems with foreclosures which are causing homeowners to seek out additional assistance from extension programs within the Making Home Affordable initiative.
Understandably, factors like unemployment, second liens, and underwater mortgages have been troubling for homeowners over the past months and for those who have not been able to benefit from a traditional modification, these additional home loan assistance options have been made available in certain cases. The extension programs from HAMP are set to address specific troubles homeowners are facing as there are numerous individuals who are in a particular position where a simple modification from the federal program cannot help their situation.
As an example, Bank of America and other participants within the modification plan take part in such programs as the Second Lien Modification Program, the Home Affordable Unemployment Program, and the Home Affordable Foreclosure Alternatives Program, all of which may be helpful to homeowners in certain areas. For instance, the Second Lien Modification Program is set in place to address a homeowner’s needs where a second mortgage is present and causing difficulty for a homeowner in terms of their payment. Some homeowners have received a primary modification on their first mortgage, but see no benefit due to payment obligations on the secondary mortgage, and this program has been offered to address those problems.
Also, it’s obvious that unemployment is a major problem for many homeowners and, for that reason, traditional home loan modifications may have been unhelpful. The Home Affordable Unemployment Program may offer homeowners with Bank of America and other participating servicers the opportunity to obtain forbearance on their home loan payment for a set period of time. Homeowners may be given the opportunity to forgo mortgage payments or have their payments drastically reduced, when they may not qualify for a traditional modification due to unemployment.
There are problems which remain between homeowners and financial institutions like Bank of America, when it concerns the foreclosure prevention efforts, as some modification and extension plans simply do not meet a homeowner’s particular needs. While there are still foreclosures which are being seen, homeowners may also have opportunities to participate in either a short sale or deed in lieu of foreclosure plan as a way to forgo the foreclosure process as part of the Home Affordable Foreclosures Alternatives Program.