Bank Of America Home Loan Modification Assistance Plans Sees Increase In Homeowner Bankruptcy

Homeowner assistance plans from Bank of America are, like many other mortgage servicers’s assistance plans, seeing homeowners who are still facing difficulties despite home loan modification efforts. Modification plans made through the Making Home Affordable Program from financial institutions like Bank of America have seen some homeowners who have successfully completed a modification trial program and received permanent assistance through these modification initiatives, but increases in the number of homeowner bankruptcies still remain as Bank of America, among others, continue to offer assistance plans in the hopes of preventing homeowner difficulties related to foreclosure and bankruptcy.

According to the Making Home Affordable November report, Bank of America had 4,409 homeowners who were in the process of bankruptcy after having their trial modification canceled. This data was tracked through the month of October, and was up from the previous month’s report which stated there were only 3,930 homeowners with Bank of America and the process of bankruptcy after the cancellation of their trial modification. Yet, homeowners who were not accepted into a trial modification also saw troubles related to bankruptcy as the November report saw 3,629 homeowners facing bankruptcy after denial of a trial home loan modification plan, which again, was up from the previous month when it was reported 3,116 homeowners were in the process of bankruptcy.

Obviously, homeowners have turned to home loan modifications as not only a way to prevent foreclosure, but many have sought out a home loan modification program from Bank of America and other financial institutions as a way to prevent bankruptcy. Many homeowners who have struggled in their personal finances and faced the loss of their home have turned to filing bankruptcy rather than facing foreclosure or continuing on their present path of financial hardships, but there have been some individuals who were successful at finding home loan assistance before turning to bankruptcy.

Understandably, there are still homeowners who face trouble related to unemployment and there are many individuals who still have a great deal of animosity towards their mortgage servicer. While financial institutions like Bank of America, among many others, have not been perfect in their implementation of modification programs, advisers are still suggesting that homeowners who fear mortgage trouble in the near future talk to their home loan servicer or an approved, reputable housing counselor about mortgage assistance options.

Again, although modifications have not been perfect when it comes to preventing homeowner troubles like a foreclosure or bankruptcy, the number of federal home loan modifications which have been made permanent throughout 2010 did increase and proprietary home loan modifications made directly from mortgage servicers have also been on the rise and may offer an alternative to federal home loan modification plans.