Bank of America’s second lien modification program has seen improvements according to Treasury Department reports that have tracked this information through the month of July, as homeowners in a position where their second mortgage has been causing problems continue to pursue this specific type of mortgage assistant opportunity after a primary home the modification may have been granted. Obviously, Bank of America is not the only mortgage servicer to use his plan to help homeowners, it is one option that homeowners with this particular servicer do have available if the conditions in their financial life warrant the need for aid when it comes to avoiding the loss of their home by reducing payments on their second mortgage.
Homeowners saw an increase in the total number of second lien modifications started between June and July for Bank of America by almost 1,000 homeowners, with the correct number of homeowners who have modified second lien modification with a partial extinguishment of their mortgage obligation having increased by almost 1,000 during this timeframe as well. Yet, we did not see any changes in the number of homeowners who were offered a full extinguishment of their second mortgage as Bank of America’s number in this category remains at 1,377 homeowners who have had their second lien modification debt forgiven as a result of this particular modification effort.
When it comes to homeowners in need though, it’s common knowledge for many that Bank of America does participate in a variety of programs that may be beneficial for homeowners in need, which is part a continuing effort made by a variety of banks within the Making Home Affordable Program, but some homeowners are still unaware of this particular opportunity to have their second lien addressed when a primary modification has not been helpful in reducing the overall costs that a homeowner must pay and, as a result, may still put these individuals in a position where the loss of their home through foreclosure could occur.
However, homeowners do need to remember that in certain states there could be help available from programs like the Hardest Hit Fund which Bank of America also uses to aid homeowners in specific areas where financial distress and mortgage payment problems have arisen to an extent where factors like unemployment or housing trouble, like foreclosures, are above the national average. While these second lien modification programs, like primary modifications, are not perfect and do not guarantee that a homeowner will find financial stability, they can be helpful in certain cases and, according to many officials, are worth exploring in cases where homeowners with a second mortgage are having trouble.