Bank of America’s trial home loan modification program through the Making Home Affordable Program saw a decrease in the first two months of 2011, which may have resulted from certain problems that homeowners are still facing when it comes to finding foreclosure prevention assistance through this particular federal initiative. Bank of America did see an increase in the number of permanent home loan modifications they made during the same timeframe, but there are homeowners who still have many issues with banks that have been charged with implementing these plans as a way to help homeowners keep their home and find more affordability in their monthly mortgage payments.
According to the most recent Making Home Affordable Program report, Bank of America saw a decrease from January 2011, when active trial modification stood at 45,176, to February 2011 where it was reported that the active trial modifications numbered at 43,410. While some of these homeowners may have transitioned to a permanent status, many homeowners are still complaining over issues they face when it comes to acquiring a permanent modification within the federal Making Home Affordable Program.
As an example, some homeowners may have had trouble during the trial modification period and saw their modification canceled due to the fact that they did not properly submit documentation, they defaulted when they were in their trial modification payment plan, or some homeowners simply did not meet qualifications where they had to have a first lien home loan expense above 31% of their household income. Yet, these issues have still halted many homeowners from receiving the foreclosure prevention aid they needed and as a result there are many men and women who feel that their financial institution is to blame for their inability to either qualify for or sustain their mortgage payment.
Many homeowners have argued that modification plans are still too expensive despite the fact that they are supposed to help homeowners by offering a lower interest rate, monthly mortgage payment, and at times a mortgage principal forbearance option. While banks like Bank of America also participate in proprietary home loan modification efforts, homeowners have still argued that these programs, no matter from the federal initiative or directly from servicers, typically have homeowners failing to sustain their home loan modification payment due to either cost or being unable to meet certain standards.
Some homeowners have been prompted to contact a housing counselor if they are looking for a home loan modification assistance plan, as reputable counselors from the Making Home Affordable Program may better prepare homeowners for the application requirements or guide homeowners during the modification process and may lead to a high rate of success. Yet, homeowners need to understand that no financial institution has been perfect in their implementation of these modification programs and even if a homeowner is granted a modification it is not guaranteed to help them prevent the loss of their home. For this reason, homeowners are being may need to act early if financial problems have arisen so that they can explore not only modification options but alternative programs that may help them avoid the loss of their home or, if foreclosure is inevitable, some homeowners may be able to transition out of their home through a foreclosure alternative program which are also offered by these major banks as well.