Many Bank of America homeowners, and homeowners with other financial institutions for that matter, often find that when financial troubles arise and they attempt to qualify for a federal home loan modification, there are some instances where they may be unsuccessful, but reports indicate that some servicers have borrowers who are becoming current on their home loan payments even after an unsuccessful trial modification. Understandably, not all homeowners are finding a happy ending to their home loan modification program, but there are those who are finding affordability after an unsuccessful attempt at qualifying for HAMP, but also, there are options outside of this federal plan that may provide mortgage debt relief assistance as well.
As an example, data from the Making Home Affordable Program stated that the number of homeowners in the 2011 report for Bank of America who were current on their home loan after their trial modification was canceled stood at 17,543. This number in the February 2011 report increased to 21,637 and, for homeowners who were not initially accepted into a trial modification, the numbers for these reports in January and February increased from 31,557 to 40,772 borrowers who were current on their home loan.
These totals for Bank of America’s Making Home Affordable modification efforts may not point to a substantial amount of individuals who are finding themselves in a better financial position, but there are those who have been able to avoid foreclosure after unsuccessfully making their way through the federal modification plan, and being able to find options that are outside of these initiatives that are helpful for their particular situation.
Understandably, not every homeowner with Bank of America or other financial institutions may find themselves on a stable financial ground where they are able to continue making payments on their home loan without the need of a home loan modification, but for those who find that there is still a great deal of financial distress that could prevent them from staying in their home, many major financial institutions offer options like alternative modification plans from in-house programs or, in some areas, state-specific assistance may be made available to address issues like unemployment.
Bank of America is one of the institutions that also participates in extension plans from the Making Home Affordable Program, like those set in place to address issues of negative equity and unemployment, but some states are offering assistance similar to these plans through the Hardest Hit Program or the Emergency Homeowner Loan Program. Obviously, these alternative options are not always available to homeowners in the specific areas or with certain financial institutions, but individuals who are in a particularly troubling situation with their mortgage need to understand that there are options available outside of a traditional federal modification and, if these issues of affordability are addressed early enough, homeowners may be able to explore options beyond HAMP plans that will be helpful for their particular situation.