Reports that were released here in the month of July have shown some positive results in the Making Home Affordable Program, particularly in the area of homeowner delinquencies with servicers like Bank of America. While the total number of permanent modifications, as an example, have not met the standards that many officials had set early on, there are still increases from major financial institutions being seen in the area of modifications and, since there are some decreases being seen also in the area of delinquencies, this could be a positive sign in terms of homeowners who may still need assistance.
For Bank of America though, there was a significant drop in the number of estimated delinquent borrowers that were tracked through the month of April, which is within the May 2011 HAMP servicer report. It was stated that, for Bank of America, there were an estimated number of 283,445 homeowners who were delinquent on their mortgage payments for more than 60 days in March of this year, but in April there were only 269,399. Yet, Bank of America also saw an increase of a little over 9000 in the number active permanent modifications they had made for homeowners who have been able to transition from a trial modification.
Understandably though, there are many who feel that the number of homeowners remaining delinquent on their home loan with Bank of America is still a major problem, as there are some servicers who have seen ups and downs in this area from month to month. Also, this data is still from earlier in the year and factors that are more current, like increases in the unemployment rate, may also influence the ability of numerous homeowners to pay their mortgage. There are though, options for Bank of America homeowners that go beyond these traditional modifications and, as a result, it is hoped that fewer homeowners will fall into delinquency as we go on into 2011, and for homeowners who are falling behind on their payments, it’s hoped that foreclosure prevention solutions will be found.
Homeowners need to remember though that if they are having trouble making their home loan payment, contacting their servicer or a housing counselor made available from HAMP is a good starting point when it comes to exploring loss mitigation efforts from banks like Bank of America or other servicers in the modification program. While some programs may be administered directly from a state housing agency, from a program outside of the federal initiatives like proprietary home modifications, or even if a foreclosure prevention plan within HAMP, homeowners should not delay in exploring these options if they fear that delinquency may be on the horizon for their situation.