For homeowners with Bank of America, acquiring a trial modification plan is the first step in the foreclosure prevention process when homeowners are relying on home loan modifications as a way to avoid the loss of their home here in May, but issues that homeowners still face are hoped to slowly be less prevalent in the coming months as certain changes to the modification program could bring more help to homeowners. Yet, reports that were released in the early parts of May have tracked data from the first quarter in 2011 and has been a resource that homeowners can use to see how their particular servicer is continuing to meet their modification needs.
In the area of trial modifications that are currently active, Bank of America did see a slight increase according to reports from March 2011, but there are more permanent home loan modifications being seen by many financial institutions than increases in the active trial modifications that are ongoing. While Bank of America reported 43,439 active trial modifications as of March 2011, which was only a slight increase from the month before, this does not mean that homeowners have fewer options when it comes to finding more affordability on their home loan and, even though certain factors are looking more hopeful for the economy, homeowners are still in need of these foreclosure prevention options today.
The majority of Americans realize that problems related to making home loan payment stem from unemployment and the high unemployment rate that has continued to weigh down further economic recovery over the past months. There are some indications that jobless claims have decreased while new jobs are being added in certain sectors of the economy, but there are still tangible effects that are being felt from the recession and decreases in certain sectors that have led to numerous men and women either seeking new employment in a very unwelcoming job market or hoping to hold on to the job they currently have.
Homeowners do have options even when unemployment is a factor to avoid foreclosure, as traditional modifications made by financial institutions like Bank of America are usually not available to homeowners who are drawing unemployment as their only source of income. While the Home Affordable Unemployment Program is one of the initiatives that the federal modification plan has undertaken to provide homeowners with the aid they need, various states participating in the Hardest Hit Fund are also able to provide homeowners with subsidies or 0% interest loans that can be used to make their mortgage payment while they continue to seek work.
Also, changes that are forthcoming in the modification program that would provide homeowners with a single bank representative to help them through the modification plan is hoped to cut down on any confusion or lost paperwork, as well as, options for homeowners to appeal a modification decision is hoped to not only bring more success to the modification program in the mid-to latter part of 2011 but also keep more homeowners in their home and decrease the number of foreclosures that have been holding the housing market back.