Bank of America is one of the institutions to offer home loan assistance for homeowners outside of a formal modification program, as data from the most recent Making Home Affordable report has shown that numerous financial institutions have offered payment arrangements with borrowers that do not involve a formal modification plan, which could also provide alternative paths to homeowners who are struggling with either a formal modification through the Making Home Affordable plan or proprietary modification plans as well.
Alternative modifications directly from servicers and federal modification plans have not been perfect for all homeowners, as there has been criticism from many homeowners and officials concerning these foreclosure prevention efforts. However, data from the latest HAMP report shows that these alternative payment plans, for Bank of America, increased over the last two reports that were released. December’s report stated that Bank of America had a total of 1,890 payment plans which had been made to homeowners whose trial modification was canceled and a total of 1,251 of these plans had been offered to homeowners who were not accepted for a trial modification. These numbers are up from the previous month’s report, which showed increases from a total of 1,794 alternative payment plans for homeowners whose trial was canceled and 1,217 payment plans for homeowners not accepted into HAMP.
Understandably, homeowners who are still having difficulty making their mortgage payments have not always been aided by modification efforts as some homeowners feel that their mortgage payment is simply too expensive even when a modification agreement has been met. While many homeowners with various servicers have benefited from these modification plans, which usually offer interest rate reductions and mortgage term extensions, there are still cases where homeowners are facing the loss of their home due to a variety of circumstances related to factors like unemployment or illness on the part of a borrower that has led to strains in their financial life.
While homeowners may also contact credit counseling organizations or housing counselors to help review their financial situation, formulate a budget that may lead to a homeowner finding affordability when it comes to paying various debts, or even assistance through a home loan modification plan, homeowners may still simply contact their servicer directly to inquire about assistance options if financial troubles have arisen. Not all homeowners may qualify for a modification or even an alternative payment arrangement with their servicer, as more programs have been implemented over the past months to assist homeowners with their mortgage payment needs, it’s hoped that widespread foreclosures will begin to abate in 2011 as the economy and job market slowly improves.