Financial & Business News

President Obama initiated the Home Affordable Modification Program with guidelines that went into effect on March 4, 2009 to help American homeowners remain in their homes. As a result of the recession and declining economy it became clear that homeowners were in desperate need of assistance to stay in homes that would otherwise go into foreclosure. Unfortunately not all home owners have found relief through this program.

Bank of American has been pressured by the Obama Administration to increase efforts to help homeowners through the Home Affordable Modification Program. In the past month the number of mortgage holders who have a permanent Home Affordable modification has increased from 3,200 to 12,700 according to Bank of America. In addition, close to 14,000 loan modifications are pending which means the final terms have been approved and Bank of American is waiting for customer signatures to finalize the loan modification.

While this is good news for many, there are many more homeowners who have expressed frustration in their dealings with Bank of America in the past. ConsumerAffairs.com has reported that homeowners have complained about customer service issues as well as having to repeatedly provide documents necessary to move forward with a loan modification. After jumping through proverbial hoops, they discovered their modification loan was denied or worse the property had already gone into foreclosure.

Another complaint reported by a April of Albuquerque, N.M. included being offered new mortgage terms on a trial basis where the homeowner made three consecutive payments while under the impression that the loan would be modified if payments were made as directed. At the end of the trial period the homeowner discovered there was no record of a loan modification offer and nothing else could be done to help them with more affordable payments.

This information is disturbing for many homeowners who are struggling to keep up with mortgage payments. Many Americans are dealing with severe financial hardships from loss of income or other factors making it almost impossible to keep up with all financial responsibilities. Hopefully the Obama administration will continue to put pressure on big banks that literally hold the future of many families in their hands.

Bank of America has said they will continue to take “extraordinary measures” to help homeowners provide the necessary documentation required by the deadline to avoid foreclosure. If you are facing a financial hardship and have fallen behind on your mortgage payments it is imperative you speak to your lender immediately to see what options are available to you. Delaying the inevitable conversation will only waste valuable time that could be used to work with you lender to reach a solution that will keep you in your home.

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