Home loan modification alternative plans from Bank of America through in-house assistance programs that have been made available over the past months as a way to help homeowners lower their home loan payments outside of federal home loan modification plans. Understandably, homeowners are still suffering from difficulties related to unemployment or factors like underwater mortgages, but it has been reported that these proprietary modifications have offered more assistance to homeowners with Bank of America and other mortgage servicers.
Many feel that in-house assistance plans are seeing such success and higher numbers than the federal modification program because homeowners may have specific needs which could disqualify them from a federal modification program. Mortgage servicers like Bank of America typically apply universal guidelines to homeowners who are applying for a Making Home Affordable modification, but with alternative modification programs from in-house plans servicers are able to tailor these modification plans to meet a homeowner’s needs in most cases.
While not a great deal of information is known on the specifics of these in-house assistance plans, reports are still showing that the number of homeowners who are receiving trial and permanent alternative modifications are outnumbering the number of federal modifications which are being seen and according to a HOPE NOW press release, foreclosure completions were outnumbered by the total number of home loan modifications which were made in 2010.
Yet, since foreclosure is still a problem for many homeowners who are having financial difficulties, it’s believed that modification efforts will need to either be revamped in 2011 or more homeowners may fall into trouble concerning their home loan due to long-term unemployment issues. While there have been some reports which indicate private hiring has picked up in the latter part of 2010 and will hope to continue into the new year, modification efforts by servicers like Bank of America, among others, will still be needed as, again, homeowners are looking for ways to find more affordability in their monthly mortgage payment while financial troubles in their personal life remain.
Homeowners are prompted to talk to their mortgage servicer or a HUD-approved housing counselor if financial troubles began to arise, as getting a jump on mortgage trouble could provide more options for homeowners and may allow them to find a successful program more so than if they wait until their home loan situation has become too problematic. While alternative modifications are no guarantee and there have been homeowners who have reported problems in both these in-house and federal modification initiatives, there are still opportunities for homeowners to find more affordable monthly payments in their home loan through these modification efforts, but again, quick action is often advised on the part of homeowners so that they can prevent further problems if financial difficulties arise.