The data from the Treasury Department has shown that Bank of America’s trial home loan modifications that are currently active saw a decrease in the earlier parts of 2011 as reports released in July showed that, for the months of April to May, many servicers saw a decrease in the number of active modifications, but there were also some financial institutions that saw positive results in the number of trial modifications that had been reported from one month to another.
For Bank of America, the total number of trial modifications they had active in the month of April was almost 46,000, while that total for May decrease to a little over 41,000. Yet, the number of trial modifications in the May report that were made since the previous month numbered at 8326. More homeowners need to take into account also, particularly with Bank of America, are that these decreases in the number of active trial modifications does not mean that servicers are offering fewer options for homeowners in this area of the modification process, but with some, an increase in the number of permanent modifications has led to these decreases as servicers are being prompted to move more homeowners through the modification program, particularly in cases where some homeowners may have been detained in the trial modification phase.
However, there are still positive aspects of the modification program and results being seen but it is by no means perfect and, as a result, homeowners need to understand that it could be a difficult process when they are pursuing one of these modification options. It has been mentioned before but there are housing counselors that may be able to guide homeowners through this process, if a homeowner is unsure of what a modification application will require and how to go about making contact or working with their financial institution.
Also, homeowners need to understand that trial modifications do not guarantee that a permanent modification agreement will be offered down the road, as complications have arisen where homeowners may have been kept in the trial phase for too long, homeowners were still in a position where they could not meet modified payments on their home loan and defaulted once again, or there are situations where homeowners may find themselves in a position where they do not qualify for a permanent modification simply because their financial predicament has improved.
While there are still homeowners who are finding meeting their home loan payment to be difficult, the federal modification initiatives is still working to offer trial and permanent modifications for homeowners in need, but homeowners may also explore alternative modifications or options which have recently arisen like the Emergency Homeowners’ Loan Program for mortgage payment assistance or foreclosure prevention aid that may be required for their particular situation.