Bank of America homeowners seeking assistance on their home loan may have found that home loan modification efforts, among other foreclosure prevention plans and affordability options, have not always been available to those individuals who are in certain situations as some men and women have simply not qualified for the federal modification program. However, data from the Making Home Affordable Program has shown that Bank of America homeowners who are struggling with their home loan and seeking lower payments have had some success at acquiring an alternative modification after being denied federal assistance.
Reports over the past months have indicated that, overall, alternative modifications have been on the rise and may provide more options to homeowners who failed to qualify for HAMP. Data from the most recent Making Home Affordable Report has stated that Bank of America saw increases in the area of alternative modifications for homeowners who were not accepted for a trial modification but received an alternative assistance plan. As of the November 2010 report, these homeowners totaled at 13,921 while those who had a trial modification canceled but were offered alternative modification assistance from Bank of America totaled 63,627. This data, though it is in the November report, tracks activity through the month of October and, according to data from December’s report, these numbers increased.
The December 2010 Making Home Affordable servicer report stated that, through the month of November, the compiled number of homeowners with Bank of America who were not accepted for a trial modification but received an alternative modification numbered at a total of 18,031 and those who had their trial modification canceled but were given an alternative modification plan numbered at 72,600.
Obviously, there were homeowners with a variety of mortgage servicers who attempted to use refinancing as a way to lower their monthly mortgage payment obligation when mortgage rates were quite low, but as some homeowners have either fallen into a financial position where this is an unaffordable option, negative equity may be present on their home loan, or they simply not qualify for a lower interest rate, alternative options of affordability have been sought out and modifications are one of the more common methods homeowners have found to lower their mortgage payment.
However, numerous financial institutions have been criticized over their efforts within the Making Home Affordable Program, but there have been homeowners who were aided from these modifications both from the federal initiative and directly from mortgage servicers. Understandably, there are still areas within these modification efforts that could be improved and there have been some homeowners who have faced foreclosure in spite of having options that will allow for a more affordable monthly mortgage payment, homeowners who may be struggling to make their ends meet and make their mortgage payment do still have these opportunities which may be of help for their situation. Homeowners may contact servicers directly to inquire about assistance opportunities or speak with housing counselors approved by resources like HUD or the Making Home Affordable Program.