Bank of America modifications have typically been used by homeowners as a way to lower their monthly payment on their home loan, but of course there are issues that many homeowners are facing that may make a simple home loan modification unhelpful due to factors like unemployment or negative equity, and as a result, there have been alternative assistance programs available to help address these issues, as well as, foreclosure prevention needs. Understandably, homeowners are not always in a position where they can benefit from foreclosure prevention efforts or alternative modification plans, but those who are finding that financial difficulties have arisen in their life are being advised to at least explore these options and how they may be beneficial for a homeowner’s particular situation.
While there have been some issues related to federal home loan modifications that many homeowners have faced, servicers do still offer this traditional route to foreclosure prevention, but there are extension plans available from the Making Home Affordable Program that homeowners may be able to use to help, specifically when unemployment or negative equity is one of the causes of a homeowner’s inability to meet their payments. Homeowners who may have some form of income, but could have seen a reduction in their wages from their employer may be those who would best qualify for a traditional modification, as an example, however homeowners who are unemployed will not qualify for a federal modification plan due to the fact that they are relying on unemployment benefits.
For this reason, options from the Making Home Affordable Program have been made available to homeowners in the form of the Home Affordable Refinance Program, which has been able to help certain underwater homeowners refinance their mortgage for more affordability and the Home Affordable Unemployment Program has also been one route that homeowners have taken when it comes to finding either a more affordable monthly mortgage payment or mortgage payment forbearance when unemployment is an issue.
Obviously though, negative equity and unemployment may not be the only problems that homeowners are attempting to overcome, despite the fact that they are more common among many troubled homeowners, however options outside of the federal Making Home Affordable Program are also available and, for homeowners with Bank of America and other financial institutions, these state-specific plans can be beneficial if a homeowner qualifies. As an example, some states who are using funding from the Hardest Hit Program are able to address these unemployment and negative equity issues by either offering 0% interest loans, subsidies, or other forms of foreclosure prevention to homeowners who may be at risk of default but, with intervention, could avoid the loss of their home.
While Bank of America homeowners also have short sale or deed in lieu of foreclosure options within federal modification program, homeowners may still be in an advantageous position to avoid the loss of their home if they address these mortgage payment issues early, speak with their mortgage servicer or a MHA housing counselor, and explore what foreclosure prevention options may be available to them and get quality advice on how to begin the application process for one of these programs.