Homeowners with Bank of America who are able to take advantage of the Foreclosure Alternatives program have either been able to participate in a short sale or a deed in lieu of foreclosure plan, which has helped many avoid a formal foreclosure when financial hardships have been present in a homeowner’s life. There are some who feel that short sales, as an example, may become more popular in the coming months as home prices could dip further and foreclosures could cost servicers more in the new year.
However, a recent report from the Making Home Affordable Program, which tracked data through the month of October, has reported that Bank of America has seen ups and downs in its short sale and deed in lieu of foreclosure programs. According to the November report, which again has data for Bank of America through October, the number of short sales and deed in lieu of foreclosures for homeowners who had a trial modification canceled within HAMP numbered at 20,313. Yet, this number is down from the previous month which reported that there were 32,396 Bank of America short sale and deed in lieu of foreclosure programs through September.
Also, for homeowners who were not accepted into a trial modification plan, the HAMP report stated that there were 19,405 short sales and deed in lieu of foreclosure trends in process as of October, which was up from the previous month where it was reported that Bank of America had made 18,560 short sale or deed in lieu of foreclosure agreements which were in process, for homeowners not accepted into a trial modification.
Obviously, many servicers have had a wide range of problems in relation to homeowner affordability issues as there are still difficulties which have been present in the federal home loan modification program, but expansion plans like unemployment assistance and these foreclosure alternative opportunities have been beneficial for some as it has allowed homeowners to escape a troubling mortgage situation when assistance plans are unhelpful or unavailable.
Understandably, homeowners would rather save their home in most cases than surrender the deed to their home or sell at a loss, but in instances where homeowners face foreclosure and damage to their credit score, these alternative options to foreclosure have been a way that some individuals have escaped their mortgage situation without foreclosure, which can be helpful if a homeowner wishes to reenter the housing market in the future.
While these short sale and deed in lieu of foreclosure plans have been helpful for some troubled homeowners or those who are in an underwater mortgage situation, they are no guarantee as certain requirements must be met. However, homeowners who have had trouble finding affordability in their home loan through modification efforts from their servicer may request one of these options if it seems that foreclosure may be the next step in their housing predicament.