Bank of America’s home loan modification assistance plan has seen some success as it’s been reported over the past months that homeowners have continued to see increases in the number of modifications made within HAMP, but issues related to foreclosures still remain. Obviously, this topic of home loan modifications is widespread and complex, which has led to a great deal of differing opinions related to foreclosure prevention efforts of specific banks like Bank of America and the general home loan modification program as a whole.
Yet, for homeowners who are attempting to save their home, these individuals have been able to primarily find more affordability in their monthly mortgage payment through modification efforts as these home loan assistance plans can lower interest rates or extend mortgage terms to simply make a homeowner’s monthly payments more affordable. There have still been foreclosures despite homeowners seeking assistance through the Making Home Affordable Program and, servicers like Bank of America, still continue to face situations where homeowners have few options remaining.
Despite modification plans and extension programs, Bank of America saw an increase in the number of foreclosure starts within the Making Home Affordable Program as homeowners who were not accepted for a trial modification and faced a foreclosure start as a result numbered at 33,750, according to the November 2010 report. Yet, in December, homeowners in this group who saw foreclosure starts totaled 35,872. Essentially, these numbers are the totals of foreclosure starts that have been seen for homeowners who did not receive help from a modification, but the total number of foreclosure starts as of the December 2010 report for homeowners who did receive a trial modification but faced cancellation numbered at 21,880.
However, with state-specific plans, in-house homeowner assistance programs, and other foreclosure prevention efforts from governmental plans and financial institutions, it’s hoped that more foreclosures can be avoided in 2011 as more analysts feel the economy is beginning to pick up, even though it may be slowly. Homeowners facing unemployment, which may be the cause of their financial troubles, may have more hopes in the coming year as unemployment is said to slowly be dropping, despite ups and downs in jobless claims numbers and the unemployment rate. Yet, for a home loan problems to truly vanish, numerous unemployment opportunities will need to be created on a monthly basis so that these homeowners who are struggling financially can find a stable financial ground from which to begin meeting their monthly payments on their home loan.