Bank of America home loan assistance can come from both federal programs, proprietary initiatives directly from this particular servicer, or there may be some homeowners who can take advantage of plans from the Hardest Hit Fund as a way to help ease the burdens that some homeowners are facing in various areas of their financial life. Factors like negative equity and unemployment have been two of the major factors that have driven homeowners to a point where they cannot meet their home loan payment, and in some cases more widely known options like modifications have been unhelpful.
Yet, it was announced in March that Bank of America would offer options through the Hardest Hit Fund to help homeowners who are either unemployed or underwater and, specifically, homeowners in certain states like Arizona, as an example, may benefit from these opportunities for more affordability. There are aspects of these HHF funds that homeowners will have to explore with their particular state’s housing agency, but many major financial institutions have been willing to work with homeowners and state agencies through this initiative to help prevent more foreclosures.
Understandably, not all homeowners live in a state where these funds are available and these programs may not be available to everyone who happens to be in a state that has been given funding to implement this Hardest Hit Program. Also, some financial institutions may have to agree to allow a homeowner to use assistance plans from these housing agencies, but again, they are options that homeowners have as many financial institutions are allowing individuals to participate in these initiatives when options like federal home loan modifications have failed.
Homeowners have had trouble when it comes to getting foreclosure prevention through modifications as both federal and proprietary homeowner assistance plans have caused homeowners problems even though they have lowered mortgage payments in many cases. Homeowners have often found that they may default even after receiving this assistance due to factors like unemployment or negative equity which have wreaked havoc on the housing market. However, these issues are hoped to be addressed for homeowners who may be in a situation where foreclosure could be prevented, but again, this alternative foreclosure prevention assistance route may not be open to all.
Essentially, homeowners can either contact their servicer or state housing agency to find out more about options that may be helpful for their particular situation, and there are some individuals who may benefit from housing counseling offered by approved housing counselors in association with Making Home Affordable Program. Yet, homeowners are often advised to act quickly if financial distress, unemployment, or other factors have arisen that could prevent them from meeting their mortgage payment obligation, as there are these options that could be beneficial for homeowners in need of foreclosure prevention assistance, but homeowners must give themselves, their servicers, and these programs time to be implemented before they may be helpful.