Becoming familiar with Bank of America Loan Modification requirements is very important if you are intending on applying for a HAMP or private loan modification via this lender. HAMP stands for the Home Affordable Modification Program that was initiated by the Obama administration as a vehicle through which millions of foreclosures in the United States can be avoided. Bank of America loan modification success represents a very effective strategy for saving your home from foreclosure, but you need to make sure that your loan modification application follows all the relevant Bank of America loan modification guidelines. This is the best way to achieve a positive outcome when everything is said and done.
The main purpose of the HAMP program is to lower your monthly mortgage payment to a level of 31 percent of your gross, pre-taxable monthly income.
Requirements for eligibility
- You stand to be eligible for a HAMP loan modification in the event that:
- Your current home is the primary place where you live
- The remaining balance on your first home loan is: $729,750 for 1 unit, $934,200 for 2 units, $1,129,250 for 3 units, $1,403,400 for 4 units
- You are facing distressing financial circumstances along the lines of a salary cut, job loss, huge medical bills, or a divorce, etc.
- Your mortgage came into existence before January of 2009
- Your payment on your 1st mortgage (including taxes, hazard and flood insurance, outstanding principle and applicable homeowners association dues) is more than 31 percent of your existing gross household income.
Consequences to your credit rating
- If maintaining a strong credit score is a high priority for you, your best approach is to do what is in your means to do to stay up to date with your home mortgage payments.
- Should applying for a loan modification become necessary for you, you should expect your credit rating to take a knock to one degree or another.
- Credit ratings are calculated by the credit bureaus, and are not under the direct control of an organization such as Bank of America. The bank is committed purely to reporting on the status of their clients in an accurate manner.
- To learn more about your credit rating and how to take steps to safeguard it, visit the Federal Trade Commission website.
Late mortgage payments
- It’s not necessary to fall behind with your loan payments before you apply for a mortgage modification.
- Should you suspect that your financial commitments are on the verge of becoming too much for you to cope with (also referred to as ‘imminent default’), then it is perfectly reasonable for you to initiate an application to have your mortgage modified.
- You will be required to thoroughly record your income and expenditures so that you are able to demonstrate a legitimate case of financial hardship.
- Contact Bank Of America loss mitigation department to start the process.
If you have more than one mortgage on your propxerty, only the first one is eligible for modification under the federal HAMP program.
If your mortgage is FHA backed, your best bet is to submit your modification application via the FHA HAMP avenue.
For clarity on whether or not your circumstances make you pre-qualified for a mortgage modification, kindly visit Mycaal.com.