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:
- 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
- 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.
- 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.
- During the Bank of America loan modification review process, the home will not be moved to foreclosure sale.
- 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
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:
- How much monthly income do you need to qualify? Too much or too little income is the most common reason for denial
- 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
- Your current bank balances for liquid reserves cannot exceed the allowable amount – make sure you pass this asset ratio test
- 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
directions, required forms and the calculator generates your very own sample monthly budget to follow. Visit MyLoanModificationCenter.com for more information.