Bank of America home loan modification efforts and foreclosure prevention programs did see success in 2010, despite some troubles that homeowners faced in their foreclosure prevention pursuits, but there are concerns over problems which may arise in 2011 and the assistance plans that will be needed to address such issues. There are some analysts who feel that housing values will continue to drop and, if unemployment remains high, more foreclosure prevention efforts may be needed as there are indications the federal modification program has begun to lose steam.
While Bank of America and other financial institutions do still offer both federal home loan modification plans and proprietary modification programs, there is worry over the fact that foreclosures are becoming more common and widespread when compared to these permanent modification plans offered to homeowners. While there are those who feel that the modification program may be hindering more than helping, many individuals are seeking out some form of assistance through the Making Home Affordable initiative in the hopes of avoiding the loss of their home.
Plans like short sales and unemployment forbearance options from Bank of America are just a few of the extensions that homeowners may use from HAMP to prevent the loss of their home, yet there are still complaints being waged by homeowners in relation to the foreclosure prevention efforts. The difficulties related to homeowners redefaulting is something that may need to be addressed as many homeowners are still unable to make their mortgage payment even when a modification is in place.
Again, many feel that foreclosure prevention efforts are only delaying the inevitable in many cases and could be slowing housing recovery as homeowners who will ultimately lose their home are being kept in the housing market for longer periods of time. However, Bank of America and other major mortgage servicers have not been perfect but there have been homeowners who have avoided the loss of their home through these foreclosure prevention efforts and, as a result, homeowners still facing troubles and trials are looking to these programs and servicers for help.
While homeowners can consult their servicer directly when financial difficulties are on the horizon and the ability of a homeowner to make their mortgage payment is in question, housing counselors may also be helpful when it comes to formulating household budgets and guiding homeowners through a modification program. There is also data that suggests that homeowners who consult a reputable housing counselor approved by organizations like HUD or HAMP stand a higher likelihood of keeping their home in the long run than those who attack mortgage problems and modification program alone.
Home loan modifications are no guarantee, though, and there are imperfections in these programs, but homeowners do still have these options despite difficulties that have been faced in the past. Yet, opportunities for short sales in cases where a homeowner is in an underwater mortgage situation offer the opportunity for a homeowner to escape their underwater mortgage without a formal foreclosure process or refinancing for negative equity homeowners also may offer affordability options. However, homeowners may benefit from addressing potential problems earlier rather than later so that the best course of action may be targeted for their mortgage situation.