Bank of America home loan assistance plans to aid delinquent homeowners through lower mortgage payments on their monthly home loan requirement have mainly been offered through various foreclosure prevention efforts, like assistance plans directly available from various financial institutions to homeowners in need of foreclosure prevention assistance or more affordability. Financial institutions that service mortgages have offered federal home loan assistance plans, like modifications, over the past months, but more analysts feel that alternative forms of aid may be more helpful as a great deal of criticism has been levied against the federal modification initiatives and servicers in general.
In-house home loan modification programs from servicers like Bank of America have been offered over the past months, despite the fact that more news coverage has been given to federal assistance plans. Yet, slow results within the federal modification program had many believing that either servicers will need to take preventative measures through in-house home loan assistance programs in order to avoid adding more foreclosed homes to the already flooded housing market, or offer opportunities like deed in lieu of foreclosure plans or short sales if more formal foreclosures are to be prevented.
Sadly, some homeowners had the chance to refinance their home loan for a lower rate when home loan interest rates were at record lows, but homeowners who have had extended financial problems, particularly related to their mortgage may not be in the financial position to either acquire a lower rate at the present time or afford the costs that come with doing so. For many homeowners, simply getting a lower monthly mortgage payment has been their focus, and while major servicers like Bank of America, among others, have been able to offer federal and private modification plans and refinancing opportunities, there are still homeowners having trouble sustaining lower payments.
One of the main factors behind housing troubles that need to be addressed is the loss of employment for homeowners who, in many cases, were previously able to afford the cost of their home. While increases in mortgage payments when adjustable-rate mortgages, for example, were present had been countered through various refinancing or loan restructuring opportunities, even interest rate reductions and mortgage term extensions within these modification efforts have not prevented numerous foreclosures over the past months, and this is a concern many in the housing industry feel needs to be addressed.
While there are still homeowners who believe that many major financial institutions could have done more to prevent foreclosures in numerous cases, there are still issues within the housing market that go beyond foreclosure prevention practices that could be hindering the success of homeowners when they seek lower mortgage payments through home loan assistance plans. It’s true that there are some indications that homeowners are finding themselves in a better financial position and on a more stable financial ground, but continued calls for homeowner assistance programs to help homeowners avoid delinquency on their mortgage will likely necessitate continued foreclosure prevention efforts in 2011 if more homes are to be saved.