Bank of America is one of the financial institutions working within the Making Home Affordable Program who recently saw decreases in the number of active trial modifications that were reported by the Treasury Department here in the month of August. This data runs through June of 2011 and has shown that many of the servicers in this program have seen drops in the total number of active trial modifications currently in place, but this does not mean that options are still unavailable for homeowners due to the fact that active permanent modifications are seeing increases by Bank of America and others.
What may have some homeowners wondering whether these options are still available is indeed this drop has been seen in the area of trial modifications as Bank of America went from 41,069 active for trial modifications in May to 35,920 active trial modifications in June. Yet, it was also reported that between May and June Bank of America made 6617 trial modifications available to homeowners who were delinquent on their home loan and seeking assistance. Obviously, homeowners continue to fall into delinquency as factors like unemployment, equity issues, and even problems related to homeowners falling into poor health are all still present and have led to homeowners facing financial setbacks in the area of their mortgage payment.
Not all homeowners have benefited from trial or permanent home loan modifications, but these options are usually the first that are explored by homeowners since some may need to be reviewed for a federal modification before subsequent programs could be available, but there are some homeowners who are just looking for a more affordable payment on their mortgage and turned to this option as a result. It needs to be remembered though that Bank of America not only uses alternative modification plans but there are programs directly from states that may be of help as well, and Bank of America also has implemented plans in this area also.
While problems do still rise, homeowners may be in a better position now than in the past due to the fact that these permanent modifications are still seeing increases, despite data which has shown decreases in the area of these trials, but alternative home loan modifications have reportedly outnumbered the federal modification initiatives over the past months, so this may give some homeowners hope who may not be able to benefit from a federal home loan modification assistance plan.
Homeowners have been able to avoid foreclosure though, and as Bank of America and other financial institutions do still continue to see homeowners fall into areas of financial hardship, it’s important for men and women facing missed mortgage payments to address these problems quickly so that there is plenty of time to look at all of the programming available that may help then find stability and affordability on their mortgage payment. Some homeowners may be able to receive a forbearance, others may be offered principal reductions, but for those simply in need of lower payments at the present time, there are more options from Bank of America and others outside of these federal modifications so homeowners are often advised to seek help when their financial problems arise so that they can better find the option that is best for them.