New data released here in August for Bank of America homeowners facing foreclosure in the month of May after they have been denied a trial or permanent home loan modification may point to some positive signs, but there are questions as to whether decreases in the number of foreclosure starts that are being seen are the result of homeowners finding themselves on a stronger financial ground, whether foreclosure prevention efforts are working, or if there are reasons that may not be as beneficial for homeowners who are struggling to make their mortgage payment. However, for those who were denied permanent home loan modification assistance, there may be options outside of traditional modifications to help them avoid foreclosure as well.
Yet, for homeowners who were not accepted for a trial modification with Bank of America, the program total number of foreclosure starts that were seen as the month of May reportedly stood at 63,037, which was down from 64,799 in the month of April. While foreclosure completions did increase during this timeframe, homeowners whose trial modification was canceled also saw a decrease in the program total number of foreclosure starts between April and May and dropped from 32,692 to 31,566. It should be noted though, for these homeowners the number of foreclosure completions also increased from 8992 to 11,096.
What homeowners may be able to take away from this information is that there are still foreclosures being seen and, despite the fact that there are various programs in place, not all homeowners are going to be able to escape the loss of their home. Yet, homeowners are not resigned to only work with their servicer through home loan modification efforts, as the simple inability of a homeowner to pay their mortgage payment may be more complicated and require aid that goes beyond a simple payment reduction or term extension.
Bank of America is one of the financial institutions that not only offers private modifications if a homeowner may not qualify for a federal modification plan but there are programs in which Bank of America participates that may address issues like negative equity and unemployment. Homeowners need to keep in mind though that there are challenges when it comes to working with a bank to explore these programs and it could be helpful for some men and women to reach out for housing counseling assistance made available from the HOPE Hotline initiative, which can help homeowners better explore their options but also may be able to help them when it comes to getting their paperwork in order so that problems in communicating with their servicer will not arise or be as severe.
It needs to be remembered also that there are no guarantees when it comes to finding foreclosure prevention as not all homeowners may qualify and there have been some mistakes made on the part of servicers that could make getting a more affordable home loan payment more difficult. Yet, when homeowners keep in contact with their servicer, address financial problems early, and consult housing counseling assistance that may be available, they may reduce the chance of these problems arising or potentially delaying and hindering their progression through these foreclosure prevention programs.