Assistance programs from Bank of America to help homeowners who are delinquent on their home loan may be responsible for decreases that have been seen in the number of estimated borrowers who are behind on mortgage payment for 60 days or more, according to Treasury Department reports, yet there are questions of whether these decreases are the result of these loss mitigation efforts or if other factors are in play as well. Homeowners who are behind on their mortgage payment with Bank of America and other servicers have often turned to modification programs as a way to avoid foreclosure, and while these programs have not been perfect they have helped some homeowners through reductions in mortgage payments and other aspects of a modified home loan that are advantageous for struggling homeowners.
There are some homeowners though, who may have fallen into foreclosure before they could pursue a home loan modification or some homeowners may be attributing to this decrease in delinquencies simply because they are, once again, not able to qualify for a modification plan and are simply no longer in the category of those who are delinquent since they may have lost their home as a result of being unable to find assistance. However, Bank of America has seen increases in the number of active permanent modifications they currently have on their books, but also these decreases in delinquency may reflect that homeowners are at least moving through the modification program at a higher rate with the hopes of avoiding foreclosure.
According to the most recent information from the Treasury Department related to the Home Affordable Modification Program, Bank of America saw a decrease in these delinquent borrowers to 258,357, which in the month before stood at 269,399. This information is from April and May of this year, but there are still some questions as to whether these decreases in delinquencies will continue to be seen within the modification program or if homeowners may fall prey to financial hardships again even though these modification plans are being made available.
While there are hopes that these drops in the number of delinquent homeowners being seen are the result of factors like modification programs or the simple ability of a homeowner to continue meeting their home loan payment as a result of an improvement in their financial situation, there are still more foreclosure being seen as a result of unemployment, housing difficulties, or even health-related issues for homeowners. It’s hoped that many of the programs that are currently in place to help homeowners avoid the loss of their home will be able to do more in the coming months if more homeowners are seeing financial hardships arise, but homeowners need to remember that they can look outside of these modification programs for the aid that may be necessary to help them keep their home.
Bank of America is not the only institution who participates in a variety of programs but homeowners with multiple banks may be able to take advantage of private modifications, forbearance opportunities, or even principal reduction plans which could help homeowners in difficult situations that may require help that simply goes beyond what a federal modification may be able to offer.