Bank of America home loan modifications increased according to the most recent HAMP report, but there are still homeowners who are in need of lower mortgage payment opportunities and are seeking out trial modifications from Bank of America and other mortgage servicers participating in the federal modification program, but there are questions as to whether these trial modifications are becoming more available to homeowners or if the home loan modification program overall is beginning to slow.
There have been reports that more homeowners are either being denied a trial home loan modification or are having their modification canceled, which is obviously creating a great deal of frustration for homeowners who are in need of a more affordable mortgage payment so as to avoid foreclosure. Yet, Bank of America is one of many servicers who has recently seen little activity in terms of these trial modifications.
While permanent modifications rose, the most recent Making Home Affordable report stated that Bank of America has a total of 45,176 active trial modifications, as of January 31, 2011, which is a decrease from the previous month’s report where Bank of America had a total of 45,753 active trial modifications in place. While the total number of trial modifications started increased from 352,869 in December to 358,726, as of the January 2011 report, there are still concerns on the part of many officials and homeowners as to whether federal modification plans are still helpful or have become a hindrance.
Bank of America has not escaped its share of criticism as both homeowners and governmental officials feel that various financial institutions need to up their efforts and the modification program needs to be revised so that more success may be seen for homeowners seeking to avoid foreclosure. Yet, there have been reports that the modification program, in its current state, is causing more difficulty for homeowners as many are attempting to use their savings or are falling behind on payments before a trial modification is offered, which obviously creates difficulty in the personal financial lives of those seeking these foreclosure prevention plans.
While federal modifications are still in place and can be beneficial for homeowners, many have turned to housing counselors that are suggested by the Making Home Affordable Program as a way to better guide them through the modification process, in the hopes of increasing the likelihood they will have a successful modification agreement offered. Yet, homeowners do still continue to state that modification payments are too costly in some cases and even alternative home loan modification plans made directly from servicers have had their share of homeowners who have defaulted even after assistance was offered.
However, homeowners may still contact their servicer or a reputable housing counselor approved by either HUD or the Making Home Affordable Program in order to begin the modification process or seek out other forms of foreclosure prevention assistance that may be offered from their servicer.