Here in early July the Treasury Department released new information regarding the home loan modification program and for Bank of America there was some positive news in the form of an increase in the number of permanent home loan modifications that were reported from April to May of 2011. This may be a good sign for homeowners who are currently in the process of applying for a home loan modification plan as there are some servicers who are seeing less than desirable results in the modification program in both the areas of offering permanent modifications and seeing homeowners who can sustain the payments within these plans.
Yet, this information given here in the month of July has stated that Bank of America increased their number of active permanent home loan modifications from 109,827 in April of this year to 119,142 in May. Data from earlier in the year, more specifically the first quarter, put Bank of America in an unfavorable category as one of the servicers who is stated to need substantial improvement within their modification efforts and while Bank of America does have time to make improvements before they are denied their incentives for participating in HAMP, these continued increases could mean modification changes are helping homeowners.
What homeowners can take away from this data though is there are those who are having success in terms of the modification process despite the fact that there are numerous difficulties that have been faced by men and women when it comes to dealing with the servicer of their home loan. Understandably, there are still homeowners who simply do not qualify for or benefit from the modification plan, but there are alternatives that can be used to help those who are at risk of facing foreclosure.
While there are reports that many banks have begun working with homeowners in the area of the Home Affordable Foreclosure Alternatives plan in the hopes of offering more short sales, as an example, homeowners with Bank of America and other financial institutions need to remember that there are some options still open within HAMP or state programs that may allow them to avoid a short sale too. Understandably, unemployment is a major drain on the lives of homeowners at the present time and even in cases where one member of a household might still have their income, meeting a mortgage payment can become quite difficult.
However, Bank of America homeowners may qualify for plans like the Home Affordable Unemployment Program or in some states there are foreclosure prevention plans or loan programs open to the unemployed. Yet, homeowners are sure to still face problems when dealing with banks in some cases, but with data like this from the Treasury Department that shows large servicers like Bank of America are continuing to see increases, it could point to a more positive future for homeowners who are looking to save their home by acquiring a more affordable monthly mortgage payment.