Bank of America homeowners who have been unsuccessful at acquiring federal home loan modification may benefit from alternative modification plans as a recent Treasury Department reports show that alternative modifications have been offered for an increasing number of homeowners whose trial modification was either canceled or for those who were not accepted for a trial modification within HAMP when seeking mortgage payment assistance. These alternative plans may be beneficial in that homeowners could work with servicers through private plans or other alternative modification options that may go beyond what a federal modification may be able to achieve in a homeowner’s situation, but again these programs have not been perfect in all cases.
Yet, alternative modifications from Bank of America reportedly increased between June and July for homeowners whose trial modification was canceled as the recent data we have shows that this number of homeowners offered this type of assistance increased from 70,679 to 73,289. Also, Bank of America homeowners who were not accepted for a trial modification saw an increase in alternative modifications from 75,627 to 87,834 between June and July as well, which may be positive information for homeowners who are struggling to find an affordable mortgage payment.
Homeowners have not always benefited from modifications though as there are those who have found that problems arise when it comes to these programs as defaults have occurred at a higher rate than the federal modification plans when these private home loan mortgage modification assistance programs are concerned. Understandably, homeowners who are in a position to take advantage of modification programs need to make sure that their personal finances are in order so that they can benefit from these plans, as some homeowners may have a great deal of debt, may have miscalculated their income when reporting to and applying for a servicer’s mortgage modification plan, but there are other issues that may come into play as well if a homeowner is unable to benefit from reduced payments.
While not all homeowners have defaulted during these private modification plans, it does need to be understood that some homeowners do continue to struggle and, as a result, counseling assistance may be helpful to when homeowners cannot meet their mortgage payment or other obligations, and if factors like unemployment or other hindrances that are beyond the control of the consumer are in place, it may be helpful to not only pursue mortgage modifications but speak with creditors to ask about forbearance periods, reduce payments, or other assistance that may be helpful so that homeowners can better use their income to honor their debt obligations without having to worry about missing payments even when major assistance plans like a home loan modification are in place.