Bank of America announced that it will begin refinancing mortgages up to 105% of a home’s value. This is being implemented as part of the Home Affordable program. This program is aimed at helping the distressed homeowner avoid foreclosure and is loosely modeled after a program announced by the FDIC.

According to Bank of America it will offer short term trail loan modifications that may be later converted to permanent loan modifications. These modifications appear in to be in reality nothing more than repayment plans set up on a limited basis, possibly as short as 3 months.

Bank of America’s announcement comes as a result of the OCC and OTS Mortgage Metrics Report that identified that the vast majority of consumers that receive loan modifications do not have their payments decreased by more than 10%. This report also showed that some consumers are actually receiving loan modifications wherein their payments increase. This report should have not come as surprise to the administration or the banking industry.

However now that focus is being applied to this situation the administration is setting guidelines for loan modifications and Bank of America is following suit. While this will most likely set precedence for the banking industry and make an attempt at reversing the high rate of Mortgage modification failure, one needs to ask if even this is not just another method to cover up the problem, and if these new adjustments will be enough.

The key words of Bank of America’s modification plan are “short term loan modifications“, so some questions need to be asked:

Will these temporary adjustments be converted into long term modifications and even if they are will they be what are needed to rescue the homeowner who is facing foreclosure?
Will this possible ‘industry standard’ be good for the consumer?
Will a minor adjustment to the rate of failure for modifications be sufficient ammunition for the administration and banking industry to establish a set of guide laws?
If so what will these guide laws mean to the homeowner?
Will they be required to accept a set of “cookie cutter” modifications?
Or will they benefit from knowing exactly what they can expect from a banks loan modification?
Wouldn’t the homeowner have a better chance of being able to handle the mortgage adjustments if they were tailored to their particular needs?
Will these standards not cause main street America to fit into a very tight range of qualifications in order to save their home?
By establishing standards such as the ones being implemented temporarily by Bank of America and the FDIC are we not attempting to eliminate the very fiber of individualism that makes America what it is?
Would the nation as a whole not be better suited to a variety of options that would cover an array of financial capabilities, rather than just one?
Should the lenders have power over the homeowner, or should the home owner have power over the lender and mortgage modifications?

These points should be greatly considered before we allow a bank to establish a set of guidelines that may in the long run be detrimental to the health of America.

All we can do is wait to see what happens and hope that the distressed homeowner is truly the concern here, that the solutions will provide recovery from millions of foreclosures. Meanwhile there are still millions of America that are in need of immediate help with mortgage negotiations, if you are one of those distressed homeowners you should give great consideration to hiring a negotiation expert to assist you with your mortgage modifications. A reputable negotiation expert will be able to represent you in a way that will provide a solution that is catered to your personal situation. Given the current state of affairs with the mortgage modification industry you do not want to attempt to mitigate with your lender alone.

Discover how you can ethically modify your home mortgage loan and save as much as 47% off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit our website Saint Jude’s Mortgage Rescue

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About the Author:
Discover how you can ethically modify your home mortgage loan and save as much as 47% off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit www.RescuedBySaintJude.com Saint Jude’s Mortgage Rescue
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Bank of America mortgage refinancing is now easier to get approved for thanks to President Obamas housing stimulus plan. This stimulus was designed to be easy for struggling homeowners to qualify for, and Bank of America is taking part. Here are some things homeowners should know about refinancing a home mortgage with Bank of America and President Obamas housing stimulus plan.

Bank of America is one of only a few mortgage lenders or banks who are authorized to offer homeowners mortgage refinancing options from Obamas stimulus plan. They get a cash incentive every time they approve a struggling homeowner for a mortgage refinance that saves them money, their home, or both. These cash incentives allow Bank of America to ease a lot of their refinancing restrictions and help more people. The Obama stimulus plan provides the incentives to selected lenders and banks to help struggling homeowners save money, and avoid losing their home. Without the incentives, many homeowners would have a hard time getting approved for a mortgage refinancing.

Foreclosures and mortgage defaults are at all-time highs right now and many homeowners are financially struggling. This $75 billion stimulus plan was passed to help millions of homeowners and help stabilize the housing market. Without this plan, many more homes would be lost and the entire economy would feel the effects.

Homeowners are encouraged to take advantage of this stimulus plan and get a mortgage refinancing. Bank of America mortgage refinance is easier than ever to get approved for and many struggling homeowners are eligible to get help. People should take action now and get help with a home loan refinance by contacting Bank of America to see what new options exist for them.

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One of the most dreaded scenarios that homeowners have to face is having their home loans disapproved. If you are looking for ways to finance your monthly mortgage which suddenly seems to be too expensive for your household budget, what options do you have? 
Fortunately, the federal government has initiated several programs and a lot of incentives for homeowners. The Home Affordable Modification Plan (HAMP), for example, is something that will allow you to qualify for a lower monthly payment through loan modification. 
All you need to do is determine if you qualify for HAMP, submit an application with a loan servicer, ensure that your debt-to-income ration is at least 31% and undergo the income verification process and trial period. 
Things to Remember when Applying for HAMP through Bank of America 
Since the option to modify your loan through the HAMP program was introduced as part of President Barack Obama’s stimulus plan, a lot of homeowners lined up to take advantage of it. The problem is that if you are applying for the program through financial institutions like the Bank of America, there are a lot of instances when the application gets denied. 
What if you’re already facing a foreclosure and your HAMP application through the Bank of America got denied?  This is a scenario which is less-than-desirable – so in order to counteract the frustrations that you might feel during the process, here are a few things that you need to keep in mind: 1. Exercise a lot of patience during the application process. Did you know that there are a lot of homeowners who applied for the HAMP loan modification program for two to more than five times? At one point or another, their reapplication got approved – although if you’re the impatient type, you may not reach this point as a result of being frustrated. 
What’s important is to make sure that you are aware that it is possible to turn no into a yes – as long as you put your financial records in order to increase your chances of having HAMP approved the second, third, fourth or even fifth time around. 
In relation to this, it would also help if you will treat the loan services with friendliness and patience – having the right attitude simply makes going through the process feel a lot better.  
2. Make sure that all the necessary paperworks are in order. One of the most common reasons why HAMP applications get denied in the first place is that applicants do not submit all the necessary paperwork. To increase your chances of getting approved, make sure to submit all the requirements needed for the income verification process. 
3. Escalate your request from one level to another if you need to. Again, as a result of the President Obama’s stimulus plan, financial institutions like the Bank of America got flooded with HAMP requests. So it is no wonder why a lot of applications end up getting denied. If this happens to you and you know that you qualify for the loan, don’t hesitate to escalate your request from one level to another. Make follow-up calls and learn about the loan application process inside out. 
Patience, persistence and knowledge about the process are the keys if you would like to have your home loans approved after having been denied. As long as you know that it is possible for you to resend your application, there will be higher chances of finally getting your loan modified so that you will have more borrower-friendly terms.

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About the Author:
Rob K. Blake, mortgage expert and author, educates mortgage shoppers on finding local providers by state like Kentucky Mortgage Brokers and Lenders and provides reviews of national companies like Alternative Home Financing.
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