Bank of America Loan Modification: More Flexible Than You May Think
The first thing anyone who is going to request a Bank of America loan modification should do is to speak to their loss mitigation department to:
-Let them know you are going to opt for loan modification.
-Get the modification requirements
When speaking to the Bank of America representative over the phone, they may present you with multiple options and programs for loan modification. There are a variety of options available for almost any financial situation and budget, though you may not qualify for every option.
As with getting loan modification with any lender, a borrower must be going through times of financial hardship in order to receive a modification on their mortgage. While being in financial hardship may seem like enough to the borrower, Bank of America needs to be sure that after the modification the borrower will be able to afford the monthly mortgage payments after they receive their lower interest rate. Because of this, the application sent in must portray that the borrower has a plan ready to budget their monthly income and accommodate the new payments.
Failure to prove they will have their finances under control almost always ends in disqualification.
When filling out the Bank of America loan modification application, homeowners should be absolutely sure not to make any mistakes, as they can also end in disqualification. Writing a professional hardship letter to send in along with the application is a must as well, and sending in any documents requested when speaking to the loss mitigations department will speed up the process and increase approval chances.
Bank of America offers programs that can drastically affect a mortgage. There are the normal lower interest rate modifications, but there are programs that reduce the principal and others that can change adjustable sub-prime rates to regular, more moderate rates. The options are not endless, but the ones that are available can assist any of their borrowers who need it.
A Bank of America loan modification is fantastic for those who can't afford their mortgage due to interest rates, but the loan modifications don't help with homes whose value has drastically fallen. Speaking to the loss mitigations department can also yield solutions for those homeowners as well.
Emma Lanier, "Loan Modifications Assistance", Mortgage Lending Modifications
Published by Adam Hefner
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5 Comments
Post a CommentBank of America is full of SH&! Everytime I call, I m transferred to several different people and no one knows what they are doing or talking about. They need to offer more training to the people who work for them.
Too little, too late! If they can mislead the President of The United States with making him think they were going to do modifications, what does the President think Bank of America has been doing to us? Nothing will be done until they start foreclosing on the White House itself. Trust me, BofA is arrogant enough to do it too! They have been abusing us Mr. President and America does not trust Bank of America anymore. It is more like Bank of Defrauding America!
Please help me send a message to BofA which states, that we will no longer tolerate their potentially irregular, fraudulent and abusive business practices. In the end, the American tax payer did not fail to deliver the BofA bail out in record time, but BofA failed to deliver the American Tax Payer's bail out in the form of a loan modification. It reminds me of that song by John Lennon and George Harrison titled "Piggies" I invite you to listen to this song on youtube and see if it appropriately fits.
http://www.youtube.com
loan modification. She said that we are current on credit cards and car payments and therefore do not fall under the guidelines for assistance.
This is outright fraud. The HAMP stipulates that retirement accounts cannot be used to determine financial status and in addition, being behind on anything (credit cards, mortgage, etc.) is not a HAMP requirement.
Think I am only one person? Wrong, go out to www.loansafe.org and read the thousands of horror stories.
The lenders feet must be held to the fire! If we continue to let this happen, our country will be in worse shape than it is now!
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December 2008 - Countrywide refuses loan mod without a reason.
March 2009 - Obama plan underway. Contact Countrywide again. They say they can't help because we make too much money. Because they added husband's net income to his gross income and used that figure! Request that they re-open our case.
May 2009 - Told by Bank of America rep John McFarland that they will not help us since it is not their fault we are over-extended.
July 2009 - Contact Bank of America's Barbara Desoer to request a loan mod. Cannot pay August mortgage payment. Faxed new hardship letter and required documents.
August 2009 - Assigned Bank of America Negotiator Melissa Henderson.
August 21, 2009 - BOA Melissa Henderson calls to inform me that our request is being denied. She informed that we meet all of the requirements under President Obama's HAMP program, however, because my husband borrowed money from his retirement plan (which is depleted and we are still repaying), we do not qualify for a loa
Bank of America Flexible in Loan Mod? Not even close!
Here is my story:
In July 2007, we re-financed with Countrywide in order to get out of an ARM that was about to go up astronomically.
In order to get the loan through, the value of our home was appraised over what is was really worth. In addition, only my husband's name was put on the loan since the credit cards are in my name.
The loan is an interest only arm that does not include taxes and insurance. The payment is $3407 and my husband takes home $1300 per week. I am a stay at home mom with 2 young children.
In September of 2008, we were struggling to pay our bills. The value of our home was plummeting. We weren't behind yet, but were about to be. We pro-actively contacted Countrywide in October 2008 and asked for help.
Here is a time-line of events:
October 2008 - Sent Countrywide hardship letter. Husband withdraws $25K from his retirement fund to pay bills. This money must be repaid quarterly - $100