Most Americans work hard to purchase a home. However, sometimes, the dream can backfire and you can end up with a threat of foreclosure. There are several reasons for this that include family problems, job loss, serious illness, or many other factors that can create a financial hardship. The federal government has requested that many of the issuing lenders start some type of mortgage modification assistance program. Even though the government has stepped in, many banks are still resistant to stopping the foreclosure proceedings. For example if you're loan is serviced by Bank of America, then you can go directly to them, or it may be in your best interest to find a skilled foreclosure attorney that has experience working with them on their modification program.
The Bank of America Mortgage Modification program comprises programs to suit various situations. As you might expect, the criteria to be eligible for these programs differ. They've built a website for people facing a financial hardship to go view the different options available and attempt to match up the correct program with the particular situation. Consulting with a foreclosure attorney at this point may be beneficial, if you don't know exactly which way to proceed. A successful application can stop a foreclosure so that you can retain your home. An incorrectly completed and submitted application can result in a rejection, leading to the loss of your home.
The stakes are for keeps, so with this in mind you may be want to apply for the Bank of America modification program as soon as possible if you've missed any mortgage payments or might miss some soon. They will scrutinize and filter your application by putting you through many different qualification criteria. If you do qualify, you might get to reduce your mortgage principle by up to 30 percent. The bank though will require that you provide them with some details about your situation.
If you're able to meet the criteria below then you might be able to qualify for the Bank of American mortgage modification program.
The mortgage payment you're current making must be more than 31% of your current income before taxes.
The home has to be your primary residence.
The amount you owe on the first mortgage must be equal or less than $729,750 for a single home.
You are undergoing financial hardship because of job loss, illness, or divorce.
The loan on the home was not taken out after January 1, 2009.
In case your mortgage is an FHA loan, you might qualify for the FHA Home Affordable Modification Program.
Process
You can request that Bank of America give you an application form once you decide that you'd like to proceed with the modification process. The bank officials must really feel that you need the help, so it's extremely important the application be filled out correctly. The bank will take into account your current income and expenses and propose a new payment schedule that will be on trial for three months. If you can afford to make those payments for the three months, then the bank will send over a new mortgage document with the terms that will be revised.
Even if you do not qualify for a Bank of America Mortgage Modification, there is no need to lose heart. As your attorney will explain, there are other options. A good attorney will help you determine if entering into a short sale might be an option. This will in turn stop the foreclosure process. This is possible if the current value of your home is less than what you owe the bank. A foreclosure will have a devastating effect on your credit and ability to qualify for a new home, so a short sale would be a good option because it would allow you to qualify much quicker if you chose to purchase another home at some point in the future. The short sale process also might help you become eligible for the government to make assistance available for your relocation. If you'd like more information on that you can always approach the bank officials for guidance or again contact an attorney to consult about your options. Most attorneys will give free consultations.
The Bank of America Mortgage Modification program comprises programs to suit various situations. As you might expect, the criteria to be eligible for these programs differ. They've built a website for people facing a financial hardship to go view the different options available and attempt to match up the correct program with the particular situation. Consulting with a foreclosure attorney at this point may be beneficial, if you don't know exactly which way to proceed. A successful application can stop a foreclosure so that you can retain your home. An incorrectly completed and submitted application can result in a rejection, leading to the loss of your home.
The stakes are for keeps, so with this in mind you may be want to apply for the Bank of America modification program as soon as possible if you've missed any mortgage payments or might miss some soon. They will scrutinize and filter your application by putting you through many different qualification criteria. If you do qualify, you might get to reduce your mortgage principle by up to 30 percent. The bank though will require that you provide them with some details about your situation.
Qualification Requirements
If you're able to meet the criteria below then you might be able to qualify for the Bank of American mortgage modification program.
The mortgage payment you're current making must be more than 31% of your current income before taxes.
The home has to be your primary residence.
The amount you owe on the first mortgage must be equal or less than $729,750 for a single home.
You are undergoing financial hardship because of job loss, illness, or divorce.
The loan on the home was not taken out after January 1, 2009.
In case your mortgage is an FHA loan, you might qualify for the FHA Home Affordable Modification Program.
Process
You can request that Bank of America give you an application form once you decide that you'd like to proceed with the modification process. The bank officials must really feel that you need the help, so it's extremely important the application be filled out correctly. The bank will take into account your current income and expenses and propose a new payment schedule that will be on trial for three months. If you can afford to make those payments for the three months, then the bank will send over a new mortgage document with the terms that will be revised.
Preventing Foreclosure
Even if you do not qualify for a Bank of America Mortgage Modification, there is no need to lose heart. As your attorney will explain, there are other options. A good attorney will help you determine if entering into a short sale might be an option. This will in turn stop the foreclosure process. This is possible if the current value of your home is less than what you owe the bank. A foreclosure will have a devastating effect on your credit and ability to qualify for a new home, so a short sale would be a good option because it would allow you to qualify much quicker if you chose to purchase another home at some point in the future. The short sale process also might help you become eligible for the government to make assistance available for your relocation. If you'd like more information on that you can always approach the bank officials for guidance or again contact an attorney to consult about your options. Most attorneys will give free consultations.
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