Bank of America homeowners who were struggling with a second lien saw more improvements in terms of the number of modifications started and active second lien modifications that were made by this particular servicer, which may be good news for homeowners who are struggling to make their mortgage payments but have a second home loan in place that could be a hindrance to affordability. Homeowners across the nation have had trouble when it comes to making their home loan payment, but even in some cases where a home loan modification is offered, these individuals may have problems that prevent them from affordably making their mortgage payment even if their primary home loan is modified, and this problem in some cases has been traced back to a second mortgage.
Bank of America and other financial institutions working within the Making Home Affordable Program have been in a position to not only help homeowners by modifying their second lien payments but there are some cases where these loans have been extinguished entirely or partially forgiven so that homeowners can avoid foreclosure as a result of financial difficulties in their life. Luckily though, Bank of America saw increases in this area as there were reportedly a total of 14,734 second lien modifications which had been started as of June 2011, which was up in the previous month where only 12,315 starts had been reported.
Also, the number of full extinguishment on these second home loans did increase slightly for Bank of America homeowners between the months of May and June as this number rose from 1,341 to 1,337. Obviously, homeowners who are offered a full extinguishment of their second lien may have more hurdles to overcome in terms of keeping their home as there are those who still struggle with their primary home loan despite having their secondary mortgage forgiven or partially reduced.
Yet, there was also increases seen in the number of active modifications within this program as homeowners who saw a partial extinguishment within the second lien modification plan rose from 10,894 in the month of May up to 13,222 as of June 2011 Treasury Department report. Homeowners who are suffering from mortgage payment difficulties will have to qualify for a primary home loan modification first, in the majority of cases, so it’s important for homeowners to remember that they will have to begin working with their servicer or contacting an accredited housing counseling agency early so they can get the ball rolling on these programs. While modifications of any kind are not guaranteed to always offer a solution, numerous people are still seeing benefits and mortgage payments sustainability despite ongoing hardships in the lives of many homeowners.