Bank of America homeowners seeking a trial modification have been able to review information that has been released from the Treasury Department over the past months, and despite the fact that many homeowners with a variety of servicers still face issues related to these modifications, there are some positive results being seen in the total number of trial modifications that Bank of America has been offering, as well as, increases in the number of homeowners who are seeing assistance from these plans. Yet, questions remain as to why there are still problems within the modification program, as the initiative has been going since 2009, but hurdles still remain for homeowners who are finding themselves new to the program here in June as a result of continued economic hardships.
While the total number of trial modifications that have been started by Bank of America increased to over 378,000 according to the March 2011 HAMP report, homeowners still argue that far fewer are in a trial modification or permanent modification now in comparison. The total number of permanent modifications that have begun over the life of the program, according to the same report, stands at over 123,000, so homeowners are still wondering why Bank of America and other major financial institutions are seeing so many fail out of either the trial modification itself or who are being denied a trial modification in some cases.
Blame that has been put on the banks is something that every homeowner is familiar with and as there has been continued and in-depth coverage on the modification program in general, many homeowners understand the basics of this plan, even though there are changes that are currently being seen in not only reports related to trial, permanent modifications and other HAMP initiatives, but certain aspects of the program have also been altered in order to help homeowners too. As an example, servicers will soon be required to offer a single contact representative for homeowners during the modification process, but there have been housing counselors available for months to guide homeowners in a similar fashion in order to help them stand the best chance at getting a modification.
One of the main problems, though, that many feel to be not only weighing down these modifications but a homeowner’s ability to meet their mortgage initially, does not center around servicer actions or deeds that have been perpetrated by these large banks, but simple high levels of unemployment are one of the main reasons that homeowners fail out of modification plans. Yet, homeowners still argue that despite these problems, federal initiatives and even in-house modifications could be made more affordable so that homeowners will stop losing their property through foreclosure, foreclosed homes will no longer be in such excessive numbers that the housing market simply cannot fill them, and homeowners will be able to stay in their home thanks to affordable payments as a result of term extensions or interest rate reductions.
Yet, the debate over who should shoulder the blame for why homeowners are facing such hardships is one that is likely to continue for years, as some homeowners simply acquired more debt than they could repay, while some financial institutions are still being accused of not doing all they can to prevent foreclosures. However, Bank of America homeowners and others with these major financial institutions do still have from modifications available here in June and, since hardships like unemployment the property value decreases continue to be an issue, exploring these options may be necessary for more individuals in the coming months in order to give them a chance to avoid the loss of their home.