The number of Bank of America homeowners who were delinquent on their mortgage 60 days or more and, potentially qualified for a home loan modification program, dropped from the November to December Making Home Affordable Report, which tracks data on these homeowners in the months of October and November. Obviously, there are still issues that homeowners face when it comes to meeting their mortgage payment but modification efforts, despite criticism, have aided some homeowners over the past months when it comes to finding the affordability they need so they can avoid the loss of their home through foreclosure.
The number of homeowners with Bank of America who were estimated to be delinquent on their home loan for 60 days more numbered at 425,308 as of October 2010, but that number decreased to 408,524 in the month of November, which was reported in December’s HAMP report. There are many who hope that this decrease has shown a sign that the homeowners are finding foreclosure prevention assistance through these modification plans or that more individuals are simply able to meet their mortgage payment and are no longer classified as delinquent.
However, there is concern that homeowners are simply not getting the assistance they need from servicers through both home loan modification efforts and extension programs, but some officials feel the modification program is actually slowing home loan recovery and, in some cases, has cost a homeowner their property. While there have been questions over the practices related to foreclosures of some major financial institutions, there has also been calls for the termination of the modification program, but many feel that there are still homeowners who can benefit from the federal modification plan despite the numbers that were initially hoped to be reached will not be met.
Bank of America is one of the many financial institutions that offers not only federal modification and proprietary homeowner assistance plans, but expansion plans which may address underwater home loan needs, second liens, or there may be offers to homeowners to either short sell their home or surrender the deed to their home if foreclosure is inevitable due to their being in a severely delinquent position.
Understandably, no homeowner wants to lose their home and many have sought assistance from modification plans or other prevention efforts over the past months, but as these programs continue, along with other state-specific home loan assistance foreclosure prevention programs, it’s hoped that widespread foreclosures will be prevented in the coming months as the economy and job market continue to improve and put more people in a position where they can return making their monthly mortgage payment on their home loan without fear of foreclosure.