Homeowners with Bank of America have fallen into a position where a HAMP modification program may not be available so they have turned to bankruptcy as a result of their financial situation, and according to the Treasury Department Making Home Affordable reports, Bank of America was one of the mortgage servicers who saw an increase in these bankruptcy numbers. However, homeowners may still have opportunities available outside of foreclosure and bankruptcy even when a modification program is not made available.
Yet, it does still need to remembered that there are some homeowners who feel that bankruptcy may be their only option, and in some cases a homeowner’s a situation may have deteriorated to a point where bankruptcy seems inevitable or could indeed be one of the last options they have. For homeowners whose trial modification was canceled within HAMP, the overall program total in the month of April for Bank of America stood at 7,197 homeowners who were facing bankruptcy, while this number in May increased to 7,802. Also, for a homeowners who were not accepted for a trial modification program, Bank of America saw a program total increase from 10,228 bankruptcies in April to 11,694 in May.
Homeowners should remember though, there are opportunities from Bank of America and many other major banks that can help homeowners who are struggling to make their mortgage payment, even if a federal home loan modification plan is not available. There are some homeowners who may fall behind on their modified payments, some homeowners who may not even qualify for a modification to begin with, or there are some issues which may not be addressed through a traditional modification plan, but homeowners do still have access to a variety of foreclosure prevention options even when these HAMP plans are not available.
While there have been some states who are starting to address homeowner mortgage payment issues, it needs to be remembered that not all homeowners qualify for foreclosure prevention assistance, and in cases where these programs may be available, and it does not mean that a homeowner’s servicer is offering a specific type of mortgage aid that could potentially be available in their area. Yet, with homeowner forbearance options available, for those who are unemployed, principal reduction plans, or even short sales, there are opportunities beyond a simple modification that may be able to help homeowners avoid bankruptcy or foreclosure, particularly when these homeowners are going through a tough financial time.
Some programs made available from servicers like Bank of America can address homeowner payment needs, but tomorrow should also remember that there are resources like housing counselors and nonprofit credit counseling agencies that may help them get their overall financial life in order as well, so that bankruptcy can be avoided once again despite the fact that there may be the presence of financial stress due to certain factors. Again, some homeowners do eventually face foreclosure or bankruptcy, but exploring these alternative options quickly before a homeowner’s situation becomes too problematic has been advised by officials so the homeowners may stand a better chance at avoiding major financial setbacks like bankruptcy or loss of their home.