What is the Bank of America loan modification approval formula and how can a borrower have the best chance of getting a loan workout from the bank? It’s no secret that most homeowners are told they do not qualify after applying for a loan mod, but what if you knew the actual approval formula used to determine which borrowers are eligible? That is the inside information that could make the difference in getting approved or being turned down.
There is a standard Bank of America loan modification approval formula used on every application that is reviewed. This formula is really a mathematical equation that utilizes the financial information provided by the homeowner on the financial statement section of the loan mod application.
Bank of America Formula for Loan Modification Approval:
- Monthly gross income
- Monthly expenses
- Current mortgage loan balance vs. current market value
- Current mortgage payment
- Bank Balances
- Disposable income
The bank then uses all of this information to determine if the homeowners loan can be modified using the standard methods – reducing the interest rate, lengthening the loan term and finally reducing the principal balance. If you do not have enough income or if you have too high monthly expenses, you may not fit the Bank of America loan modification approval formula. That is why it is critical to have the formula and use it when you are preparing your own application – that way you can make any necessary adjustments before the bank reviews it.
Get help to prepare your Bank of America loan modification application with the #1 resource for homeowners, The Complete Loan Modification Guide Kit
and Loan Mod Quick APP software program. The kit includes step by step directions, required forms and a software program that actually provides the same formula the bank uses. You will see immediately if your income and expenses are passing the formula and where you may need to fine tune your figures to pass all of the approval triggers. Visit
MyLoanModificationCenter.com for more information on how to get your application approved.