Methods Bank of America’s home loan modification program has used when it comes to offering homeowners a lower mortgage payment typically have come in the form interest rate reductions and term extensions on the homeowner’s mortgage agreement. Obviously, homeowners who are in a bad financial position and in need of a more affordable monthly mortgage payment have been able to benefit from these assistance options, as many may have been unable to take advantage of opportunities to lower the overall costs on their home loan.
For homeowners with Bank of America and other financial institutions across the nation, low interest rates were made available throughout 2010 which allowed for homeowners to lower the costs they must meet month-to-month on their home loan or lower the overall costs they will pay on their home. Yet, these options which were available through refinancing were typically not available to those who were in a bad financial position due to the fact that homeowners either could not benefit from refinancing in a significant way, meaning they were not in a position to see a drop in their interest rate, a home loan may have been in negative equity situation preventing refinancing, and some homeowners simply could not afford refinancing costs.
Obviously, factors like unemployment also played a big role in housing difficulties that homeowners faced, yet modification programs from both the federal Making Home Affordable initiative and in-house modification alternatives are presently still offering these rate reductions, term extensions, and in some cases principal forgiveness, in the hopes of helping homeowners prevent defaulting on their home loan.
There have been troubles between homeowners and mortgage servicers which have led to a great deal of complaints and questions over foreclosure practices, but when it comes to finding more affordable monthly mortgage payments, there are methods which homeowners have used to find foreclosure prevention efforts and a lower home loan payment through these modifications. While there are some servicers, like Bank of America, who also offer homeowners an earned principal forgiveness program, where homeowners who remain consistent with their mortgage payments will see a drop in their principle over time, it’s understandable that homeowners are still facing a variety of issues which need to be addressed so that foreclosure may be avoided.
Reports have indicated that the federal modification program has begun to slow, in relation to the number of foreclosures being seen, but extension plans which have been implemented by servicers to address issues like second mortgages, unemployment, and the availability of alternative modifications made directly from mortgage servicers are hoped to provide opportunities for more homeowners to avoid the loss of their home when financial hardships are present. While modifications are not always a guarantee or available to every homeowner, there are options for help in the modification process and personal financial issues for homeowners through housing counselors which have been approved by sources like the Making Home Affordable Program or the Department of Housing and Urban Development.