Delinquent homeowners have often turned to modifications from servicers like Bank of America as a way to avoid foreclosure, but for homeowners who may not qualify for these plans, there are questions as to whether there are further opportunities to aid these delinquent men and women with their mortgage payment. Obviously, numerous individuals are aware of supplemental programs that Bank of America and other servicers offer, but there has been some reports recently released that show positive results in the area of homeowners who were denied either a trial or permanent home loan modification but who became current on their mortgage payment and did not fall into foreclosure.
Recent reports from the Treasury Department indicated that for homeowners with Bank of America who had their trial modification canceled, those who were reported to be current between March and April of this year increased from 29,114 to 29,759. Also, in the area of homeowners who were not initially accepted for a trial modification, the number of borrowers reported to be current on their home loan with Bank of America increased from a total in March of 69,968 to a program total of 102,453 in April.
Obviously, there are homeowners who are finding themselves in a better financial position than when they entered into the modification program hoping to qualify for mortgage assistance, but homeowners need to understand that Bank of America and other servicers may also participate in state initiatives that can help with reinstatement on a homeowner’s mortgage. As an example, one of the more widely known programs from the Hardest Hit Fund in California offers a reinstatement program that may be able to help homeowners who are behind on their mortgage become current up to a set amount.
In the past, some homeowners have become unemployed and left without an income for a period of time during which they fell behind on their mortgage payment, but when job opportunities arose, some homeowners were able to continue making their home loan payment but still owe money from missed payments in prior months. While some banks may be able to offer proprietary assistance plans to address these issues so that homeowners do not face foreclosure since they are currently in a position to meet their home loan payment obligations, these options are not always open with every bank or in the case of every homeowner.
While homeowners are being prompted to take action when they have fallen behind on their mortgage payment or when missed payments may be inevitable, but it may point to some positive signs in areas of the housing market that there are borrowers who being denied a home loan modification did not lose their home but were able to return to their current status on their mortgage. Yet, homeowners may still need to talk with financial representatives like housing counselors or contact their servicer in order to explore what affordability options may be available so that missed payments may be avoided.