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:

  1. Monthly gross income
  2. Monthly expenses
  3. Current mortgage loan balance vs. current market value
  4. Current mortgage payment
  5. Bank Balances
  6. 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

Uses Approval Formula!

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

Download immediately!

MyLoanModificationCenter.com for more information on how to get your application approved.

4 Responses

  1. Tweets that mention Bank of America Loan Modification Approval Formula - Income & Expense Requirements | Loan Modification Central -- Topsy.com Said,

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    Posted on February 5th, 2011 at 12:34 pm

  2. Nikki D White Said,

    My conversation with Bank of America:
    May 27, 2011
    Barbara ext. 2907
    Bank of America
    Called to get information why I do not qualify for the HAMP loan modification
    Barbara said my Loan Modification was declined
    I asked Why? What specific reason or reasons?
    Barbara said I should receive a letter that will tell me the reasons.
    I told Barbara I received a letter this morning and it did not give a specific reason or reasons.
    She said “if you would look at the bottom of the letter it says they were unable to create an affordable payment equal to 31% of my income”
    I asked what figures were used by the underwriter for my income
    She said “it says you have zero income”
    I asked her why would it say I have no income?
    She asked if I provided all the documents showing my income. I told her I submitted bank statements, tax returns, profit & loss statements. I submitted all the documents that were required.
    I asked her to check in my files to see if she can see any documents relating to income, reluctantly she looks.
    Barbara said she can see in my files the 2 profit and loss statements, my bank statements and tax returns.
    I said ok, now you just asked if I submitted those documents and you can see them in my files, why would the underwriter say I have no income?
    I told her this does not make sense.
    I asked her for the underwriters name, she said she cannot give me that information.
    I asked who can I talk to regarding this issue.
    She said I can fax all documents again relating to my income and once that is received they can file an appeal.
    Or I can start over and apply for the HAMP modification again.
    To make sure I was understanding what she was telling me I said “ I need to start all over again and resubmit the 50 plus pages to them again”
    She said that is correct. I said you just told me you can see the information in my files and yet I must resubmit everything all over again.
    She said there is no guarantee that I would get the modification if I appeal or re-apply for the program
    Barbara confirmed again that she does see the profit & loss statements that are through 3/31/11, bank statements from November 2010 through March 2011, tax returns for 2009 & 2010.
    I will need to resubmit all of them again. But they need to be more up to date.
    After they receive the “current” information they can file for an appeal.
    Barbara would not give me any names or numbers of anyone at Bank of America that I could talk to regarding my application.

    Posted on May 30th, 2011 at 1:04 pm

  3. Lisa Said,

    Nikki I have been going through this since August 2009 so I decided to email the President of BofA and copied some of the people in the modification department. After months of no return calls and lack of concern once I sent the email I have received several calls from people trying to assist me brian.t.moynihan@bankofamerica.com, nicholas.j.kieser@bankofamerica.com, cynthia.mech@bankofamerica.com. Send them an email it may be of some benefit.

    Posted on June 4th, 2011 at 8:39 pm

  4. Shayna Said,

    Lisa, what kind of e-mails did you get? Have you found it helpful? Did you have to write your entire story in the e-mail? Thanks.

    Posted on July 1st, 2011 at 8:10 am

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