Bank of America Loan Modification

Information on Bank of America Loan Modification

Request instructions for Bank of America workout package or hardship package can be found at:

http://www.bankofamerica.com/loansandhomes/financial-difficulty/

Bank of America (800) 846-2222

• HAMP government program explanation, eligibility links, calculators and more

What you can expect from Bank of America to obtain a loan modification:

Bloomberg.com reported that Bank of America was one of the worst performers amongst the biggest U.S. banks in modifying loans for struggling homeowners. As of August 5, 2009 they had only modified 4% of eligible loans, according to this article. In November, BofA has increased this percentage to 14%. See this post for details.

Bank of America has improved their mortgage modification eligibility review process, but they lack on execution.

They took $45 billion in TARP funds (the government asset relief funds that is designated for banks to use to assist home-owners to remain home-owners without the bank taking large losses) but it doesn’t appear that they have used these funds to build an efficient modification department.

Caution:
They have signed up under the Home Affordable Mortgage Program to provide relief to those home-owners that are struggling and have a Fannie Mae or Freddie Mac mortgage. But in fact, they are substituting the rules (see the Home Affordable Mortgage Program page on this website) by adding that they will not reduce the mortgage payment if it ends up being less than 50% of the original mortgage payment.

This is absolutely not a rule under the Home Affordable Mortgage program. This program states that if the home-owner qualifies, the mortgage payment would be reduced to 31% of their monthly gross income (including property taxes, home-owner insurance, association dues if applicable and repayment of escrow advances). It does not limit the reduction of the mortgage payment to any more than 50%. Unfortunately, if you receive this response, what really can you do about it?

How To Fight Back:
I recommend you take a look at two of our recommended homeowner tools.

The first tool on our Tools Page provides help from loan modification expert, Mike Rockwood, using his Loan Modification Workbook and weekly online Q&A and training sessions.

The second tool is for you, if you really feel your back is against a wall with BofA jerking you around. You should review the Stop Foreclosure in a Day workbook, also on the Tools Page. There is a little-known government program you can use to stop the foreclosure process in less than a day, without having to hire an expensive attorney. This tactic should force BofA to the negotiation table.

I also invite you to bookmark this site for the latest Q&As and news updates on loan modification trends and scam alerts.

• Bank of America faces pressure from faith-based groups over loan modifications

• Bank of America planning more principal reductions to qualified homeowners

• Bank of America rejected loan modification despite mediation help

• Bank of America to clarify HAMP terms for customers

• Bank of America loan modification program blames borrowers for low approval rate

• Florida homeowners have filed hundreds of loan modification complaints against Bank of America

• HAMP trial loan modifications only helping 20-percent of eligible homeowners so far See BofA stats