Bank of America homeowners who have filed for bankruptcy after being denied a trial home loan modification or who may have had their trial modification canceled increased according to reports from the Treasury Department released in July which tracks data through the month of April. This has led some homeowners to question whether there are any alternatives if a home loan modification program is not granted or if a trial modification is simply too much for a homeowner to handle. The good news is that homeowners are not necessarily having to resign themselves to bankruptcy or foreclosure if their trial is either denied or does not lead to a permanent modification, but there are certain avenues that may be closed for some homeowners.
Bank of America does participate in not only extension programs within the Making Home Affordable Program but there are also state-specific plans which Bank of America homeowners may use and of course Bank of America also worked with homeowners through private modification efforts as well. Yet, some homeowners have been concerned over these bankruptcy numbers as homeowners whose trial modification was canceled and subsequently filed bankruptcy increased to a cumulative number of 7197 as of April while the homeowners who were not accepted for trial modification as all their numbers increase to a total of 10,022 as of April 2011.
Homeowners do need to understand that there are some problems which may arise that could prevent them from meeting the payment requirements that come with a trial modification and, as a result, they may be denied this form of assistance or may default once again after they have had their trial modification in place. These financial troubles which arise may be different for one homeowner or another but there are options to help address issues like unemployment which may be causing homeowners to face financial difficulties. However, in cases where homeowners may have a mortgage payment that is less than 31% of their income, this obviously disqualifies them from a federal modification plan and as a result homeowners may have to look at other options or if there are areas of financial waste in their life which could be eliminated.
While Bank of America has representatives that may be able to help homeowners uncover the best route for their situation, some homeowners are still unaware about counselors that are available through resources like HUD or the HOPE Hotline, as these housing counselors have been usually approved and are reputable so that homeowners may be able to avoid scams which have been perpetrated against those in a financially difficult situation seeking relief. While these resources may help homeowners with Bank of America or any financial institution better explore their options, homeowners do need to realize that even if they can’t find a foreclosure prevention plan, bankruptcy or foreclosure is not necessarily guaranteed as there are also options like short sales and deed in lieu of foreclosure programs that may help some homeowners who are facing a troubling situation.