Bank of America Loan Modification 2012 Update

Posted by admin On April - 29 - 2011

Homeowners who apply for a Bank of America loan modification will find the process a bit easier due to the 2011 update to the process.  Painful waiting times, lost paperwork and conflicting information have been a huge problem with the resulting few number of completed mods.  The federal treasury department has changed and actually loosened the guidelines that the bank must follow and this should result in faster answers and hopefully more permanent loan modifications being offered.

The Bank of American loan Modification Update for 2011 include:

  1. Less documentation required from borrowers – this means that in some cases homeowners will only be required to submit 2 recent paycheck stubs to verify their income
  2. Quicker response times – from the initial request for mortgage assistance, the bank will now provide the application form within 15 days and upon receipt of all the required documents, a decision will be made within 30 days.
  3. The homeowner will be given a complete explanation of why their loan modification was denied, and given the chance to contest the decision by providing additional documentation and a second review.
  4. During the Bank of America loan modification review process, the home will not be moved to foreclosure sale.
  5. Should the loan mod be denied, the homeowner will be contacted with an offer to short sale their home under HAFA-the government streamline program that pays the homeowner $3000 in moving expenses

Apply Correctly

Homeowners who apply for the Bank of America loan modification need to be very careful when completing the budget part of the application form.  This is the monthly income, monthly expenses and bank balances for the borrower and this information is used in a formula to determine if they will qualify.  Here is what you need to know when preparing your application under the 2012 guidelines:

  1. How much monthly income do you need to qualify?  Too much or too little income is the most common reason for denial
  2. Monthly expenses must prove that you cannot afford the current mortgage payment, your cash flow must also meet the requirements and the disposable income be acceptable
  3. Your current bank balances for liquid reserves cannot exceed the allowable amount – make sure you pass this asset ratio test

    Sample Budget-Automatically!

  4. Your must pass the Waterfall Method of Modification – reduce interest rate, lengthen loan term or reduce principal balance due meet a 31% target payment after modification

Get help to apply correctly for the best shot at Bank of America loan modification approval – the #1 resource for homeowners includes the 20012 guidelines – The Complete Loan Modification Guide kit and loan modification software calculator provide step by step

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directions, required forms and the calculator generates your very own sample monthly budget to follow.  Visit for more information.

4 Responses

  1. Christi Bell Said,

    We are in process of modification application with Bank of America and it is horrendous. We submitted our initial application on 6/22 and have been repeatedly asked for more information since then. We are on our third representative and there was a one month period when we heard nothing at all.

    QUESTION: I’d like more details about what you quote above … where can I find a copy of the Bank of America HAMP update?


    Posted on November 10th, 2011 at 8:44 pm

  2. L Barker Said,

    Go to & welcome to the beginning of the end. We’re in our 11th month, same situation as you. MY ADVICE: Record every phone call (@ least notes if not actually recorded) Start applying pressure by writing your State’s Federal Congressman, President Obama and the Office of the Comptroller (OCC) under the Division of Treasury. Our congressman opened a case at the OCC when I sent in my short documented letter. Call BOA and ask where your application is. The final application we sent in, when I called to verify it was received the contact person had the wrong fax number on the checklist / cover letter to my package he sent. Everything you send or fax – call & make sure they got it & when and who. Don’t assume anything! Please……

    Posted on December 4th, 2011 at 8:52 pm

  3. j.cox Said,

    I have been dealing with Bank Of America and they are doing the same thing to me requesting the same paperwork I have doing this now for 6 months and they still have yet to tell me anything, but a friend of mine called the hope hotline and had a 3 way phone conversation with her bank and they finally approved her., that is my next step. So I might suggest you contact HOPE and talk with someone there who may be able to assist you
    I totally think it is not necessary to put people through something like this they are under enough stress as it is . I sent all of mine certified that way they cannot tell me they didn’t get it.
    Required signature.

    Posted on July 14th, 2012 at 8:49 pm

  4. S.Patterson Said,

    I have been dealing with BOA for a home loan modification since January. It has been a night mare from the start!! Why did the government bail them out? I have faxed, mailed, called and more faxing to get this home loan modification and still nothing! They want to do a “Short Sale”. Why? It would NOT benefit them! At least they will be receiving money from me if they do a home loan modification. I know if it would go on the market to be sold today.. BOA would lose a lot of $$! I put money in the house when I purchased it because it was a “dump”. But I seen potential! But it still needs a lot more repairs. This situation has affected my health because of the stress! I have NOT paid some of my creditors just to make my BOA mortgage payments. BOA was bailed out.. now that they are in O.K. shape (thanks to our government).. their customers are just a number. My thoughts are that they have NO soul and are willing to do what it takes regardless of WHOM they hurt or “throw under the bus”… If I had better credit.. I would “bail” out of BOA instantly!! I LOVE OUR HOME …BUT… I DESPISE BANK OF AMERICA!!!

    Posted on June 4th, 2014 at 6:15 am

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