Loan Mods Are Working According To Bank of America

I see in the news that Bank of America Corp. noted “significant gains” in the number of loan mods through the government’s Home Affordable Modification Program.

Evidently, over 12,700 of its customers now have a permanent loan modification, which is four time the number of loan mods that were completed a month earlier. Their are another 13,700 loan modifications that are pending. This means the final loan mod terms have been approved and just need the customers’ signatures.

The bank was quoted as saying:
“In the past month, our concerted customer outreach initiative has driven a substantial increase in the rate of conversions from trial to permanent modifications,”.

To qualify for a permanent loan mod, a borrower with a trial modification is required to make three consecutive monthly mortgage payments and complete the documentation.

There has been concern that many applicants wouldn’t be able to meet the requirements because of the amount of paperwork and additional training and processing required by lenders, but this does not appear to be the case and loan mods are looking like a great solution for homeowners!