Bank of America homeowner assistance through short sale and deed in lieu of foreclosure plans are one option that distressed homeowners are seeking as a way to avoid continued problems with their mortgage and substantial damage to their credit score after negative equity or financial difficulties have created problems to the point where a homeowner can no longer afford their mortgage payment. Obviously, homeowners who are facing distress have attempted to acquire a modification program, in many cases, and many servicers will often look at a homeowner’s situation to make sure that foreclosure prevention is not possible before offering these alternatives, but short sales and deed in lieu of foreclosure plans are reportedly on the rise according to the newest Making Home Affordable report.
While there were numerous servicers who saw increases in their short sale and deed in lieu of foreclosure efforts, Bank of America also saw a rise in the total number of homeowners who, after being unsuccessful in modification program, have been offered either a short sale or deed in lieu of foreclosure plan. Obviously, homeowners who may either surrender their deed after distress has created financial problems or sell their home at a loss when negative equity is in place but are forgiven of remaining obligations on their mortgage will benefit as, in many cases, homeowners who are unsuccessful at finding either foreclosure prevention or using a foreclosure alternative plan often face foreclosure.
However, for homeowners with Bank of America who were not accepted into the trial modification program within HAMP, December’s Making Home Affordable report stated that there were a total of 18,572 short sale and deed in lieu of foreclosure plans offered, but this number increased according to the January 2011 report to 25,066 homeowners in this category who were offered one of these foreclosure alternative options. Also homeowners who had their trial modification canceled, totaled 19,667 as of the December 2010 report, in terms of those who had been offered a short sale or deed in lieu of foreclosure plan, and that number for Bank of America also increased in January 2011 to 24,201.
While these totals tracking the result of a homeowner efforts have in some cases shown positive results, there are still foreclosures being seen by many across the nation. As a result, many officials have been prompting homeowners to be more proactive in their efforts to make homeowners aware of these foreclosure prevention efforts and alternatives to foreclosure that may be available for their situation. Also, some have asked that banks be more proactive, in areas like short sales for example, as they may be able to help homeowners who are attempting to sell an underwater mortgage find a buyer in a timelier manner.
Again, Bank of America is not the only servicer using short sale and deed in lieu of foreclosure programs, but obviously, homeowners with a particular servicer will need to contact their financial institution or consult resources from the Making Home Affordable Program to begin the process of either qualifying for or applying to a short sale option or a deed in lieu of foreclosure program.