Bank of America homeowners who have been denied a permanent or trial modification but are currently in the process of bankruptcy or have been in the process has remained relatively unchanged according to data that was recently released by the Treasury Department, and this has led to questions for homeowners who may be facing a situation where foreclosure prevention assistance is needed. Obviously, not all homeowners are successful when it comes to the modification program and, particularly for those who may be in a troubling situation where factors like negative equity and unemployment are an issue, some homeowners feel that if a modification is not offered, bankruptcy is their only option.
The good news for homeowners with Bank of America who have been tracking the paths of homeowners after being denied either a trial modification or having their trial modification canceled is that there has been relatively little increase in the number of reported bankruptcy filings for those in this category after making their way through HAMP. Yet, this is not to say that there are still a lot of homeowners with a variety of servicers who are turning to bankruptcy, but as there are more issues being brought to light in terms of federal home loan modifications and other foreclosure prevention programs, it’s hoped that options available to homeowners in need will lead to fewer bankruptcies and foreclosures in the coming months.
There are those who feel that major banks who have been charged with these modification programs have not done as good of a job as they could have though, but there are those who also feel that the modification program in general is quite flawed. Servicers like Bank of America have seen increases in the active permanent modifications that are being tracked at the present time and proprietary home loan modification plans are also being reported to have helped more homeowners over the past months when other foreclosure prevention routes may have been closed.
Yet, because of problems that are still being seen within the modification program, options directly from states are being offered in areas where problems like unemployment and negative equity have been particularly severe and above the national average. Luckily though, major services like Bank of America have been participating in these initiatives, and it has offered homeowners with a variety of servicers a wider range of assistance options for their home, particularly when certain aspects of financial hardship like joblessness is in place.
While we await new data from the Treasury to be released, there are still those who are hopeful that continued improvements will be seen even though homeowners are still facing setbacks and hardships, and the program in general has been deemed to have not reached as many homeowners as potentially could have been helped. When it comes to preventing the loss of one’s home though, there are those who want homeowners to avoid losing hope or resigning themselves to bankruptcy as, once again, more options have been made available to help with a variety of financial stresses that may have homeowners facing the potential loss of their home.