Homeowners with Bank of America seeking a trial modification plan for their home loan payments may have seen that recent data indicated there was a decrease in the number of active trial modifications that Bank of America had in place, as of August, and when servicers see decreases in this area it leads to homeowners questioning whether these trial modification programs are still available. Yet, there are still options available to homeowners from the Making Home Affordable Program that can benefit them when it comes to paying their home loan and avoiding foreclosure as a result of financial distress.
Recently, it was reported that Bank of America saw an improvement in the number of permanent home loan modifications they had active but the decrease between July and August in the number of active trial modifications went from 31,815 in July to 28,763 and August. What this means is that homeowners may be following a variety of paths after a trial modification is initially offered as the decrease in these active trial modifications was lower than the increase we saw in active permanent modifications, which may be positive news in some ways, but there are also homeowners who are unable to meet payments and an active trial modification and, as a result, are disqualified from the federal Making Home Affordable Program.
Homeowners with Bank of America do stand to benefit from modifications in cases where homeowners do meet certain qualifications, as there are some who find themselves in a position where these costs are simply too high. Furthermore, homeowners may make the mistake of pursuing modifications when certain extension programs from the MHA initiative could better suit their needs. As an example, some homeowners with Bank of America may qualify for underwater mortgage refinancing opportunities, while others could potentially benefit from unemployment assistance that may be available from the federal UP initiative.
While we are seeing changes in the modification program in general and with specific servicers, a few things remain the same when it comes to homeowners taking advantage of these modification programs and benefiting from a trial offer, which typically centers around homeowners addressing their financial needs early so that foreclosure can be prevented through either these modification plans or the exploration of alternative programming if necessary.
Homeowners are being reminded constantly that there may be free housing counseling assistance options that potentially could be of help when it comes to not only understanding the application process, what a modification will entail, and how they can best communicate with their servicer but homeowners have found that these resources can also help them when it comes to selecting the best program to fit their needs, as Bank of America homeowners are not simply in a position where federal plans are all they have, but some state-specific initiatives could be helpful also.