Data from the Making Home Affordable Program has shown that Bank of America’s short sale and deed in lieu of foreclosure initiatives have seen mixed results over the past months and, for homeowners who are struggling to make their mortgage payments and may not qualify for foreclosure prevention assistance, these foreclosure alternative plans have been the only option some may have other than simply facing a foreclosure process. Obviously, homeowners have attempted to save their home through various federal and proprietary home loan modification and mortgage assistance means, but some who are in a specific situation, either facing financial distress or in a home where the property value has plummeted, may qualify for these short sale or deed in lieu of foreclosure alternatives.
Yet, homeowners with Bank of America who are tracking data from these programs may have seen a decrease in the number of short sale and deed in lieu of foreclosure plans according to HAMP reports. While these short sale and deed in lieu of foreclosure options are still available from many major financial institutions that service home loans and participate in HAMP, Bank of America homeowners who had their trial modification canceled as of the November 2010 report and were offered either a short sale or deed in lieu of foreclosure plan numbered at 20,313. However, data tracked within the December 2010 report stated that for homeowners in this same category, only 19,667 of these short sale or deed in lieu of foreclosure plans were recorded.
Also, homeowners in the November report who were not initially offered a trial modification but were able to acquire a short sale or deed in lieu of foreclosure plan numbered at 19,405 but these same homeowners in the December 2010 report numbered at 18,572. While the November and December reports track data in these areas for the months of October and November, respectively, there are some who feel that the drop in number for these foreclosure alternatives may have reasons related to either foreclosure moratoriums or the fact that some of these loans have simply been removed from the servicer’s portfolios.
Yet, again, homeowners do still have these options if a foreclosure prevention program is not available as these financial institutions within HAMP are still offering both traditional modifications and various extension plans which may be able to address homeowner needs. Homeowners have, as in previous months, been prompted to contact their servicer early if foreclosure worries arise or mortgage payment difficulties are present. Housing counselors, approved by sources like the Making Home Affordable Program, may also be consulted and could be beneficial for homeowners in not only finding solutions by reviewing their personal finances but could help homeowners through the modification process as well.