Bank of America is set to release a new report showing that to date it has approved approximately 21,000 permanent loan modifications under the federal Home Affordable Modification Program (HAMP). This is encouraging news for people looking for loan modifications, as this number indicates a dramatic increase in the number of modifications approved by the bank.
The number of modifications approved is due to a change in HAMP guidelines which require banks to approve permanent modifications before they receive federal modification incentive payments. Before this change, the banks placed thousands of borrowers into trial modification programs, collected federal funds, and then denied the borrowers a permanent modification.
The MHA and HAMP programs are designed to help homeowners with Freddie Mac and Fannie Mae backed loans only. However, there are other programs out there for homeowners who do not have loans with these institutions. Regardless of credit score or payment history, these programs are designed to help homeowners stay in their homes and avoid the foreclosure process. One of the first things a Lender will require from the borrower is a Letter of Hardship explaining the borrower’s situation and why they cannot continue with their current loan. 
