Bank of America Foreclosures In Federal Modification Program Increase–Homeowners Seek Alternative Foreclosure Prevention

Bank of America foreclosure prevention assistance has come quite often through the federal modification program but homeowners who have either been denied modification assistance or had their trial modification canceled by Bank of America saw increases in the number of foreclosure starts and completions between July and August of 2011. This information on homeowners who are facing foreclosure was released here in November by the Treasury Department and has given some homeowners a better insight as to how those who are unsuccessful at a home loan modification plan are faring in terms of foreclosure.

Yet, homeowners do have alternative foreclosure prevention opportunities that may be more helpful but of course there are still increases being seen in the areas of starts and completions after homeowners have made their way through HAMP but found no success. As an example, foreclosure starts increased by over 1000 for homeowners whose trial modification was canceled between July and August, with almost 2000 foreclosure completions being reported during this timeframe as well.

Also, for homeowners who were not accepted for a trial modification initially, the number of foreclosure starts between July and August for Bank of America increased from 82,394 to 87,916. Foreclosure completions were reported by the Treasury Department to have increased from 32,094 to 37,143, but these numbers while they do continue to increase monthly for a variety of mortgage servicers do not indicate that homeowners who failed to acquire a permanent or even trial home loan modification have no other options. Bank of America does participate in not only proprietary modification plans but extension programs as well, which have been beneficial for some, but there are also homeowners with Bank of America who made be able to take advantage of specific plans like those from the Hardest Hit Fund, available in certain states.

Yet, for homeowners who do wish to avoid the loss of their home, rather than participate in a short sale or deed in lieu of foreclosure program as an example, many officials often point out that it will be necessary to address these financial problems early that may be preventing homeowners from paying their home loan on time as a certain situations may require programs outside of the modification that must be pursued by these Bank of America homeowners. Understandably though, there are no guarantees despite the fact that the servicers have made changes to their programs at the request of the Treasury Departments in hopes of meeting benchmarks, but homeowners do have multiple options available to them that may be beneficial and are worth exploring if foreclosure prevention is necessary for their situation.