What’s the #1 reason for loan mod denial?  It is deceiving-but the RMA form used to apply for a Bank of America loan modification is where most homeowners get it wrong.  Without realizing it, most of the time borrowers are sabotaging there own loan workout, simply because they supply the bank with unacceptable information!  However, if you understand exactly what the lender is looking for, then you will have a head start at getting your application approved.


  1. Monthly Income:  the household gross monthly income is one of the very first items that the bank will review-they use this information to determine a couple of things.  Are you really in a financial hardship situation? Can your mortgage be modified to an affordable payment using the Waterfall Method?   If your monthly income shown is too high or too low you will be turned down immediately.  You can verify your own figures by running them through the loan modification calculator to make sure you are passing the guidelines before

    Income,expenses Calculated


  2. Monthly Household Expenses:  you must detail how you spend your money each month for the bank.  Items like groceries, utilities, car payments, insurance, etc will be scrutinized for acceptability and hardship verification.  Bank of America will also review your cash flow before the potential loan mod to determine if you really cannot afford the payment.  They also will look at the cash flow after the loan workout to make sure you will not be a risk for re-default.  The loan mod calculator automatically shows you your cash flow before and after-and gives you the information you need to make adjustments to your expenses before you submit.
  3. Assets:  Bank of America loan modification guidelines allow you to have a certain amount of liquid reserves-checking, savings, money market, CD’s.  Careful, this acceptable figure is less than you think!  Be sure to show the right amount on your RMA form.
  4. Hardship Affidavit:  there is a choice on the form between 4 different categories of acceptable circumstances.  Loss of income, increased expenses, high debts and lack of reserves.  You can also write a separate letter explaining what has happened to you that is causing the hardship-be sure to put your loan number on the top of this page and sign it.  Keep it short-1 page is best.

Perfect Application!

With so much on the line, it does not makes sense to simply slap your RMA form together-if you get your figures wrong then there goes your chances for a Bank of America loan modification.  Keep in mind that no matter how deserving you are, if your monthly income, expenses and assets do not pass the guidelines then you will automatically be turned down.  You need to know ahead of time just how to fine tune your monthly budget so that you can prove in black and white that you are the perfect loan mod candidate.

Get the help you need to complete the RMA form-use the #1 best selling resource for homeowners.  The Complete Loan Modification Guide kit and Loan Mod Quick APP calculator provides you with the information you need-the loan modification calculator automatically generates your own

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sample monthly budget-showing you where you need to fine tune your figures before submitting.  Don’t get it wrong-avoid mistakes and get it right the first time.  Visit MyLoanModificationCenter.com for more information today.

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