When Your Bank of America Loan Modification Doesn't Work Out

Bank of America is a participating lender in the Making Home Affordable Program. This is a government program that was introduced in February of 2009 in response to the housing crisis across the United States. You may have been thrilled to manage to get a Bank of America Loan Modification, hoping stay in your home. What happens if that doesn't work out?

While the government reported over a million homeowners who had received reduced payments through a loan modification since the program's inception, many sources suggest the rate at which these modified mortgages default is at least 50%, and some insist it is 60%. What options are available for these homeowners?

The government has admitted in the same press release that they understand that not every loan can be modified with success. They realize that some homes cannot be saved.

The HAFA, Home Affordable Foreclosure Alternatives, has been made available for assisting folks in this predicament. There are options put forward to help them handle the transfer of their home through either a short sale or a deed-in-lieu of foreclosure agreement, allowing them to discharge the total debt with no future obligation. There is also funding to help homeowners secure more affordable housing and cover the moving expenses.

If you find yourself unable to make a Bank of America Loan Modification work for you, you have some help available. Ask your representative if you can utilize the Home Affordable Foreclosure Alternatives program. As a participating lender, Bank of America is required to refer you to that assistance before foreclosure.

If you are falling behind on your Bank of America mortgage, click here to get the help you need to save your home.