Bank of America home loan assistance plans available to help homeowners prevent foreclosures have, in the modification program, seen some issues when it comes to trial modifications, as there are numerous homeowners who have seen problems related to getting into the trial modification plan or sustaining their payment within the modification trial program. However, there are some individuals who feel that the number of trial modifications started, overall, have been quite high compared to the amount of active trials or even permanent modifications that were started by many servicers.
Bank of America reported that, as of the February 2011 Making Home Affordable report, there was 365,962 trial modifications started, in total throughout the life of the program. Also, the total number of all the permanent modifications started by Bank of America according to the same report stood at 111,601. However, the total number of active trial and permanent modifications is far fewer for Bank of America as only a little over 43,000 trials are currently active and a little over 96,000 permanent modifications are currently in place.
However, homeowners have been well aware that there are some issues within the modification program and sustaining trial modification payments as well. Many homeowners with numerous servicers have argued that the modification program needs to be restructured so that not only can more affordability be found in their modification payments but sustainability can be acquired as well, due to the fact that many homeowners are not only having trouble making mortgage payments in general, but many are defaulting once again even after they have been offered a modification.
Yet, some reports have also indicated that even when proprietary home loan modifications are considered, the number of defaults once again increases as homeowners still find trouble meeting their mortgage payments. While there are issues with servicers in the modification program in general, many wonder if the fact that homeowners are continuing to fail out these trial modification plans, be they from the federal initiative or in-house efforts, could be traced back to deeper issues like unemployment or homeowners simply being in a poor financial position.
While Bank of America does participate in not only modification programs but extension plans within HAMP as well, there are some homeowners who may find foreclosure prevention in state-specific programs as well, so getting affordability even when negative equity or unemployment may be a problem is still available for homeowners in distress. However, contacting a servicer directly or speaking with a HUD-approved housing counselor are a few steps that some homeowners have taken over the past months which has pointed them in the direction of aid that may be particularly helpful for their mortgage and personal financial situation.