Bank of America foreclosure prevention programs may offer alternative home loan assistance to individuals who have failed to qualify for a federal Making Home Affordable modification program. Numerous financial institutions have been using proprietary home loan modification plans as a way to help homeowners either find affordability on their home loans when financial distress has created problems or as a way to help homeowners who may have been unable to take advantage of these programs that bring affordability through the federal modification plan.
Data from the Making Home Affordable Program has tracked the homeowners who are given an alternative modification after failing to be accepted for a trial plan or who may have seen their trial plan canceled, as some homeowners are simply in a position where federal assistance is unhelpful. Homeowners in these categories do not make up the total amount of individuals participating in proprietary modifications with these particular servicers, but for Bank of America, there have been some increases in the number of alternative modifications seen.
According to the February 2011 HAMP report, homeowners not accepted for a trial modification with Bank of America’s Making Home Affordable efforts saw that a total number of 57,457 alternative modification agreements were made, which is a substantial increase from the previous month’s report where a total of 33,981 alternative modifications had been made during Bank of America’s participation in this program. For homeowners who had there trial modification canceled, Bank of America saw only a total of 72,282 modifications according to compiled data in February 2011, which was a slight decrease from the previous month’s report.
Alternative modifications, which are usually tracked in the HOPE NOW may be beneficial for homeowners with Bank of America and other financial institutions as these servicers who both use in-house and federal modification plans can help individual homeowners through either universal guidelines from HAMP or servicer-established guidelines that may be more flexible in terms of helping homeowners either qualify for these plans or find more affordability.
Yet, there are issues that homeowners still face with not only federal modification plans, but these alternative home loan modification plans as well. No servicer has been perfect in their implementation of these assistance programs, but despite the fact that there are homeowners seeing decreases through modifications, there are still many who default once again after being accepted into one of these programs. Homeowners who may have trouble with their servicer or are simply struggling financially and need modification assistance can speak with a housing counselor approved by either HUD or the MHA program, as these individuals may be able to guide homeowners through the modification process or help them deal with their servicer if issues arise.