For homeowners with Bank of America pursuing a Making Home Affordable modification, there were increases seen in the latest Treasury Department reports concerning bankruptcies that homeowners face and this has led some homeowners to question whether there are options beyond modifications that may help them avoid such extreme measures as filing bankruptcy or resign themselves to foreclosure. While bankruptcies and foreclosures have been on the rise with some consumers, there are assistance plans that may offer an alternative route to affordability for homeowners who are distressed and in need of assistance.
Bank of America is one of the major mortgage servicers that offers a variety of programs that homeowners may be able to benefit from, but it needs to be kept in mind that these plans are not always a guarantee as some homeowners have been offered a modified mortgage, as an example, only to fall back into an area of delinquency and face foreclosure again. While the number of bankruptcies between May and June for homeowners whose trial modification was canceled with Bank of America increased by almost 200, in terms of the total number of homeowners being tracked in this area, there was also an increase in bankruptcies for homeowners not accepted for a trial modification by almost 1,500.
So it’s safe to say that homeowners are still finding themselves in a position where they have become overwhelmed with debt, particularly their home loan, but homeowners often find themselves in different situations in terms of why they can’t meet certain payments, and this is where programs used by Bank of America and other servicers may help. As an example, Bank of America may be able to offer homeowners assistance through the Home Affordable Unemployment Program when the loss of a homeowner’s job is the sole reason behind their financial distress.
States have also begun offering assistance to homeowners, which has been reported on over the past months, but there are some banks that had been slow to implement plans in certain areas or allow homeowners to participate in programs like the Hardest Hit Fund, but this is where homeowners may be able to talk to counselors, representatives from their state’s housing agency, or simply speak with servicers at their bank to inquire about programming that may be specifically helpful for their situation outside of a modification.
Some homeowners with Bank of America may have received an alternative modification from an in-house program, while others are simply benefiting from extension plans within HAMP, but homeowners are being urged to address their financial concerns and needs early so that if a modification is unhelpful or unavailable they will not have to resort to bankruptcy or resign themselves to foreclosure if help from this particular payment assistance program is unavailable.