Bank of America’s alternative private modifications have seen an increase according to reports released in July from the Treasury Department that brought us information through the month of May as to what various servicers are accomplishing still within the Making Home Affordable Program. Yet, homeowners are wondering whether there are options from Bank of America, or other financial institutions, that go beyond traditional home loan modification plans as there are some homeowners who are experiencing an unsuccessful venture into the federal modification program and, at the end, are not being given the assistance they need.
Yet, in terms of the private home loan modifications that were reported in this recent Treasury Department release, Bank of America had a total of 55,510 private modifications as of April 2011 but that number increased to 56,563 private modifications as of May. Understandably, some homeowners are finding a more beneficial route in the private home loan modification area of various servicers’s foreclosure prevention plans, but it needs to be remembered that these programs are not guaranteed and have not always helped homeowners in need.
In fact there are some financial institutions that have seen large numbers of homeowners redefault after offering an alternative modification due to the fact that even in a situation where a proprietary home loan plan is offered homeowners are unable to afford their monthly payment obligation. Understandably though, homeowners are still frustrated when they are unable to find more affordable monthly mortgage payments through these efforts, but it needs to be remembered that Bank of America homeowners, among many others with the major banks working within HAMP, have opportunities that go beyond simple modifications as a way to avoid the loss of their home.
While unemployment assistance, underwater mortgage aid, and in some cases principal reductions are being offered to homeowners who are facing various trials in their mortgage, these opportunities will not be available for everyone and, as a result, homeowners still need to contact their servicer or housing counselors made available from resources like HUD or the Making Home Affordable Program to explore their options. Homeowners may have discovered that there are adjustments being made to some programs within HAMP and as a result may be able to address specific homeowner issues which have arisen that may constitute a program other than or working with a modification.
However, homeowners do need to remember that they can potentially qualify for a private home loan modification from servicers, again like Bank of America, as there are various loss mitigation efforts being put forth from not only governmental plans but these banks themselves, so if a homeowner is in need of more affordability on their home loan payment, modifications are just one route that they may take and there are potential federal and private options that can be explored as well.