Homeowners with Bank of America who are looking for alternative modification plans may be in a situation where they can take advantage of this particular type of mortgage payment assistance plan as there have been increases in the area of alternative modification plans offered to homeowners who may have been unable to qualify for a Bank of America federal Making Home Affordable modification plan. Recent data from the Treasury Department has shown that this particular area for Bank of America saw increases, and as a result, this has given some homeowners hope when they are either denied a trial modification or may have their trial modification canceled.
The most recent report released here in August tracks data through the month of May for a variety of servicers and for Bank of America homeowners who were not accepted for a trial modification, the number of alternative modifications that have been offered in total increased between April and May of this year. It was reported that for this group of homeowners the alternative modifications in April stood at a total of 55,854 while this total increased in the month of May to 75,757.
Understandably, there have been homeowners who may have had there trial modification canceled and this is obviously a frustrating predicament but the number of alternative modifications seen for this category of homeowners between May and June increased from 69,523 to a program total of 69,950, for Bank of America. Homeowners who are able to take advantage of these programs may be in a better position in the long run as there are those who have been in a situation where foreclosure could have been prevented but the federal making home affordable program was simply not right for their needs.
Homeowners have had some troubles though when it comes to these alternative plans as private home loan modifications made directly from some banks have outnumbered the federal home loan modifications in the past but they have also seen higher rates of default for homeowners who fall behind on their mortgage payment again. While this is not always true of every modification, there have been periods of time where homeowners have simply fallen behind after having one of these proprietary modifications offered at a higher rate than those who were delinquent after being offered a federal home loan modification, so homeowners should be aware that these plans are not infallible.
Yet, homeowners with Bank of America or other financial institutions who are offering these proprietary plans may be able to talk with their servicer or representative from the HOPE Hotline as a way to better explore options that may simply go beyond modification plans. Homeowners who are in a position where delinquency may be a problem are obviously going to be in a better position if they take action sooner rather than later, but again homeowners may not find the help they need from these alternative modification plans and might have to continue to look for other foreclosure prevention options.