October 30th, 2009

Bank of America Helps 125,000 Homeowners With “Making Home Affordable” Loan Modifications

Starting November 1st, Bank of America’s will have surpassed its goal of providing 125,000 trial loan modifications through the government’s Home Affordable Modification Program (HAMP).  These modifications, part of the Making Home Affordable Program, aim to resolve loan issues by offering an incentive for banks to accept modifications to a loans terms, rather than simply foreclosing on the home.

affordable

Affordable Home

Casting a Wide Net

Bank of America was one of the earliest to run trial modifications under the new program, and since then has dramatically increased the number of homeowners enrolled in these trials. Since the program was created, the Bank has contacted over 600,000 homeowners, and extended modification offers to more than 200,000. That means nearly one in five of the HAMP modifications in the US have been initiated by Bank of America.

Because of this high level of involvement, home loan modification trials offered by Bank of America are being watched closely as a test of the efficiency and effectiveness of the government’s Home Affordable Modification Program.

Signs of Success

Thus far, modification has appeared to be much more profitable for both parties than simple foreclosure. As we wrote earlier this month in an article on HAMP and loan servicers, foreclosures can be very expensive for the lending institution, costing up to $50,000 or more per foreclosure. Bank of America states that it has seen substantial gains in its trial period loan modifications, and that if this progress continues, they may convert to permanent modifications in November.

For more information on the Home Affordable Modification Program and to see if you qualify, visit the official website here.

About the banks

 

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other. It operates in 32 states, the District of Columbia and 30 foreign countries.

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Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other. It operates in 32 states, the District of Columbia and 30 foreign countries.

View profile

 
 

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  • joefinance
    More Puffery......

    How many of the loans were the Freddy's and Fannie's that they are the servicer for.... Did they just trick us into beleiving the help people? And they changed their toon... Are they going to need federal funds soon..

    93% of Bank of America's eligible "Making Homes Affordable Program" got no help... Bank of America called there campaign to help homeowners "puffery" in court... They have no intent of helping...

    They lie to congress, they trick customers and they had 7000 complaints.
  • littonloansharks
    Bank of America is ONLY playing the trial modification game. HOW MANY ARE FINALIZED, how many of those people are still dealing with their loan being considered in default? It is such a sham. Litton loans is playing the TRIAL MODIFICATION GAME with me I know all about it. It isn't real if it isn't finalized. You just drag it out pretending to modify, denying you have documents, saying you need stuff, just make it up to drag it out and ultimately foreclose, NEVER finalize.
  • littonloansharks
    Will the government EVER open their eyes and force these trial modifications to be finalized when the homeowner has complied, submitted all documentations required, and paid the trial modification on time for three months. It is patently false to say someone who is still in their home after x number of years can pay some absurdly high amount for a mortgage, but now "lacks needed income" to have a far cheaper mortgage. What kind of nonsense is that. A lot of these mortgages are eating up well over 50 percent of the household income, but it is okay to deny a final modification once they've been manipulated further into the hole, during these bogus trial modification periods. It is really outrageous that the government isn't enforcing the deals and forcing these folks to SHOW GOOD FAITH and finalize these deals that homeowners have been duped into believing will happen for them.
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