Bank of America home loan assistance programs have usually come in form of home loan modification plans, but homeowners do have options to explore other foreclosure prevention alternatives that may be more beneficial for their particular situation when a traditional modification plan may simply not bring the affordability they need for their particular situation. There have been a variety of opinions on not only home loan modifications and these alternatives for homeowners, but with servicers as well, as there are some who feel foreclosure prevention programs need to either be terminated or changed to help more homeowners, or servicers simply need to be held more accountable when it comes to preventing foreclosures that may benefit from these types of plans.
While there have been votes to terminate the federal Making Home Affordable modification program, servicers like Bank of America have seen increases in the number of permanent modifications that they have made through HAMP over the last few months despite numerous complaints from homeowners and issues which have arisen related to foreclosures. Yet, alternative plans within the MHA Program have centered around unemployment forbearance options, underwater refinancing through the Home Affordable Refinancing Program, second lien modifications, and there are also short sale and deed in lieu of foreclosure plans that may be offered to homeowners as a way of escape from a difficult mortgage situation when negative equity or unemployment have caused a great deal of distress.
There are also some homeowners with Bank of America who may be able to take advantage of state-specific plans, but not all states have implemented the Hardest Hit Fund. Yet, in some areas, major financial institutions are offering mortgage assistance plans that address issues, again, like underwater home loans and unemployment. Recently it was reported that Bank of America will begin offering mortgage principal write-downs in California as part of the HHF initiative, which is hoped to offer more foreclosure prevention options to a greater number of homeowners in the coming months.
Homeowners do need to understand that there are still issues with not only federal modifications and alternative plans, but not all homeowners in a state who may be using funds from the Hardest Hit Program will qualify for these forms of relief. However, there are some forms of outside guidance that may be available to homeowners in need from housing counselors. Currently, Bank of America and many other major financial institutions are offering a variety of foreclosure prevention options from traditional and proprietary modifications to these state-specific mortgage assistance plans, but not all homeowners have had an easy road when it comes to finding foreclosure prevention through these opportunities.
While housing counselors are no guarantee, assistance offered through the Making Home Affordable Program website or the HOPE Hotline may offer guidance to homeowners that will either show them different options available for their particular situation or may help them through the modification process which could streamline their application and give them a better opportunity at finding the affordability they need in their home loan payment.