Bank of America has been one of the large mortgage servicers to use home loan modifications through the Making Home Affordable Program as a way to provide affordability and foreclosure prevention for numerous homeowners throughout 2010. Overall, the number of permanent home loan modifications made by Bank of America and other servicers within the program have increased, but questions over the success of the program have recently arisen and troubles for Bank of America have also appeared in the form of lawsuits in Arizona and Nevada.
These lawsuits filed against Bank of America in the two states center around accusations of fraud as Bank of America is being accused of assuring homeowners they would not face foreclosure while being considered for a modification, but proceeding with foreclosures nonetheless. Typically, homeowners are not supposed to face foreclosure while they are being considered for a home loan modification, but various homeowners with different mortgage servicers have all claimed that while being considered for a home loan modification they have received foreclosure notices as well.
Also, these lawsuits against Bank of America echo frustrations homeowners have had with other mortgage servicers in that many homeowners who had completed a trial modification reported that their servicer simply denied their permanent modification for seemingly no reason at all. Understandably, homeowners are still frustrated when dealing with these financial institutions and, according to many officials, there are problems that remain in the modification program as a whole.
Officials from Bank of America stated that it was a disappointment that these lawsuits were being filed as investigations into the reliability of foreclosures are ongoing and Bank of America is said to be participating with officials who are conducting these reviews. Financial institutions like Bank of America have made improvements in their modification program over the past months, but criticism over the lackluster success which has been seen in the Making Home Affordable Program has many homeowners pointing fingers at financial institutions for coming up short in the foreclosure prevention plans.
Yet, homeowners who are still suffering in their Bank of America mortgage do have opportunities for a Making Home Affordable Modification as the program continues throughout December 2010 and into 2011. Also, homeowners who may want to seek out alternative options aside from federal modifications do have in-house, proprietary modifications available directly from mortgage servicers in many cases. These alternative modifications from servicers like Bank of America are said to be outpacing the number of permanent modifications made from the federal program.
While there are problems that remain, homeowners are still being prompted to contact their servicer or consult resources like the Making Home Affordable website and housing counselors for information and opportunities to prevent the loss of their home. Understandably, not all homeowners have found success in these modification programs, but modifications and various extension plans to address particular homeowner needs are still in place and may be beneficial for homeowners who face the loss of their home.