Bank of America homeowners who have been unsuccessful at finding more affordability in their home loan through the federal home loan modification program may have options to participate in one of the foreclosure alternatives that have been made available from the Making Home Affordable Program as Bank of America is one of the major servicers that continues to offer these programs and recent data from the Making Home Affordable Program has shown the changes in the participation of various servicers within these short sale and deed in lieu of foreclosure plan.
Homeowners who are tracked within these particular plans are either those who had their trial modification canceled or homeowners who were not accepted for a trial modification at all. Typically, homeowners who may be in one of these categories could either appeal their trial cancellation or denial, explore options like in-house home loan modification plans or state-specific mortgage assistance plans, but some may have to either resign themselves to foreclosure or seek out one of these short sale or deed in lieu of foreclosure options.
Yet, there has been some indications that servicers are being pressured to allow more short sales as foreclosures are resulting in more homes simply sitting empty on the housing market and causing areas of trouble in various states. Yet, for homeowners who are looking for one of these short sale or deed in lieu of foreclosure plans, Bank of America was reported to have seen increases and decreases in the Making Home Affordable Program.
As an example, homeowners who were not accepted into the trial modification program numbered at 25,066, according to the July 2011 HAMP report, but the number of short sales and deed in lieu of foreclosure planes in total for Bank of America as of the February 2011 report stated that this number had risen to 26,162. Yet, homeowners who had their trial modification canceled dropped in these respective months as they initially totaled at 24,201, according to the January 2011 HAMP report while the February 2011 report indicated that this number was a 21,834.
Understandably, there are some homeowners who may have participated in one of these programs and, in certain instances, were written off a servicer’s portfolio, as this could account for decreases in the total number of short sale and deed in lieu of foreclosure plans offered. However, homeowners who are still facing foreclosure but may be in a position to either sell their home loss or participate in a deed in lieu of program are being prompted to talk with their servicer about these opportunities before they enter into a formal foreclosure proceeding.
Homeowners who may have had a situation arise in their life where unforeseen financial distress created affordability issues are typically those who have the best chance at qualifying for one of these plans, but a short sale or deed in lieu of foreclosure plan are no guarantee and, as a result, homeowners may want to address their financial issues earlier so that if a federal mortgage modification program is unhelpful, they will be in a position where they may have time to seek out alternative foreclosure prevention options before either turning to one of these foreclosure alternative plans or facing foreclosure.