Information released here in the early part of September has shown that Bank of America saw an increase in the number of permanent modifications that are currently active within the federal Making Home Affordable Program as of July, which may be an indication that homeowners who are still seeking assistance are in a position to benefit from this particular route of foreclosure prevention. Obviously, Bank of America is one of the largest servicers who is dealing with homeowners that are still suffering from financial problems and are in need of more affordable monthly payment opportunities so that they can avoid the loss of their home, but homeowners have still continued to struggle in certain areas of the modification process.
While Bank of America as seen their active permanent modifications increase between June and July, which went from 127,355 to 132,763, it was also indicated in the July Treasury Department report released in September that Bank of America is still one of the servicers who requires a substantial amount of improvement in their modification efforts. What this means is that the Treasury Department has withheld servicer incentives until they make certain improvements in their modification efforts within the Making Home Affordable Program, as there were areas like income calculation errors that worked against Bank of America in this particular Treasury Department rating system.
While this report states that Bank of America still requires substantial improvement, it by no means indicates that home loan modifications are unavailable for homeowners, as again, the permanent modifications did increase for Bank of America in the most recent Treasury Department reports and there have been increases in prior months during 2011 as well. Understandably, homeowners are still facing uphill battles with a variety of servicers and have complaints across the board, but many officials are beginning to focus more on the servicer performance as continued troubles in the housing market and job market have led to the need for further action when it comes to foreclosure prevention.
Many banks are continuing to process foreclosures, which has left numerous homes simply sitting empty in the housing market and this can be attributed to some of the property devaluations that have been seen across the nation as well. While there are still buyers that are absorbing some of this inventory it is apparent that the level of buyers is well below what is needed to help rid the housing market of this foreclosed home inventory at the present time.
Yet, as foreclosure prevention efforts continue with many major servicers, homeowners are still being urged to talk with their mortgage servicer before their financial troubles become too problematic and unable to overcome, or consult housing counselors that could help homeowners better handle the federal Making Home Affordable application process and offered advice when it comes to dealing with mortgage servicers.