Bank of America’s home loan modification plan has offered foreclosure prevention opportunities for homeowners when their home loan has simply become too expensive and mortgage payments difficult to meet. Yet, there are concerns by many that the foreclosure prevention efforts on the part of servicers within the Making Home Affordable Program have not been as helpful as they were thought to have been initially. The data which is tracked through the modification program tracks the projection of homeowners after they had either been denied a trial modification or were not initially accepted for a trial modification when applying for mortgage assistance.
November’s Making Home Affordable Report tracked foreclosure data from HAMP and stated that Bank of America had 33,750 foreclosure starts and 12,867 foreclosure completions, as of October 2010, and these numbers are up from the previous month which only reported that Bank of America had 28,038 foreclosure starts and 9,157 completions for homeowners who were not accepted into it from modification program.
Also, there were increases in foreclosure starts and completions for homeowners who had there trial modification canceled as well. The October 2010 HAMP report, which tracks data through September, indicated that there were 15,045 foreclosure starts and 3,084 foreclosure completions for homeowners in this category, but in the November report, which tracks data through October, Bank of America was reported to have increased to 17,021 foreclosure starts and 3,603 foreclosure completions.
Obviously, there have been some questions over the practices of these mortgage servicers when it comes to the foreclosure process, but there are still homeowners who are even finding it difficult to meet their monthly mortgage payment when a modification is in progress. Concerns over foreclosures which may be seen in the early part of 2011 have many requesting that servicers up their efforts in the modification program, but many feel that the Making Home Affordable Program is beginning to fade due to the fact that servicers are not making as many permanent modifications as they are processing home loan foreclosures.
However, servicers have pointed out that proprietary modifications, made from in-house home loan assistance plans, are still seeing higher numbers than both modifications from the federal assistance plan and, in some cases, these conversions within in-house alternative modification programs have outnumbered foreclosures. Yet, homeowners will likely continue to see difficulties when it comes to making their mortgage payments due to problems like extended unemployment and underwater home loans.
While there are modification programs still in place from servicers like Bank of America, among others, and in-house modification programs available, extension plans are also in place to address issues like unemployment and underwater mortgages, but there are those who are concerned that more effort may be needed or changes may need to be made in current programs if foreclosures are to be halted so that homeowners can begin to get back on their feet.