Bank of America RMA Form-Avoid These Mistakes That Mean Denial

Posted by admin On February - 12 - 2013

How can you avoid common mistakes when preparing the Bank of America RMA form for loan modification?  Unfortunately the majority of homeowners who apply are turned down-and this is almost always due to the information that they provided on the application form-especially the financial worksheet page.  Unless you know ahead of time exactly how much monthly income, expenses and assets to report, chances are you will make a mistake that will mean denial.  Here is some important information to help you prepare your RMA correctly.

BANK OF AMERICA RMA FORM TIPS

  1. Don’t assume that simply because you are in financial hardship or because your mortgage is underwater that you will qualify!  The approval process is really more about MATH than your particular hardship-unless you understand the approval formula that the bank uses, you may complete the RMA incorrectly and be denied.
  2. The approval formula used on all applicants utilizes your monthly gross household income, your current mortgage balance and payment and the Waterfall Modification Method.  Your monthly income must be sufficient to pass these

    Required Income Computed

    guidelines, but it also cannot be TOO high or you will fail as well.  Find out how much income you need to pass-use the Loan Mod Calculator.  This program will automatically compute and display your specific income required based on your mortgage terms.

  3. You are allowed to use non-borrower contributions for monthly income, as long as they live in the property.  You may also use rental income, but only 75% of the net income is counted in the approval formula.  Roommate income can be used as long as you can document receipt-bank statements, canceled checks, etc.
  4. Social Security and pension income are counted, but Bank of America will “gross up” the amounts by 25% when they use the approval formula.  This allows for non-taxable gross income to be qualified.  The Loan Mod Calculator will help you figure this out, and compute it automatically for you.
  5. Monthly household expenses must be reported on the Bank of America RMA form-and you must show them that you cannot make ends meet with the current mortgage payment, BUT if given a loan mod you will be able to pay your bills and have at least $250 left over each month for emergencies.  The Loan Mod Calculator will show you where and how you need to adjust your expense to pass this important approval guideline.

Get more free information and helpful tips to apply and qualify for a Bank of America loan modification, visit MyLoanModificationCenter.com , BLOGS.

Ever wonder why some homeowners get approved for a Bank of America loan modification while others are repeatedly denied?  What’s the difference between the RMA form that gets one borrower a PASS and the other a FAIL?  It’s not about how deserving you are, it’s really all about MATH-does your monthly budget figures as reported on the financial worksheet prove that you meet the approval formula.  Homeowners who can figure out the approval formula used by Bank of America have a big edge over those who simply guess at how to complete their RMA form.

It is possible to use this approval formula when you prepare your Bank of America RMA form-this gives you the inside information you need to know ahead of time – like:

  1. How much monthly income should you report?  the approval formula uses your gross monthly income to determine your debt ratio, your new target payment and whether you pass the Waterfall.
  2. How to list your household monthly expenses:  you must list items on the Bank of America RMA such as groceries, utilities, insurance, child care, etc-and these expenses must show acceptable pre-mod and post-mod cash flow.
  3. Do you PASS the Waterfall and what will your new mortgage payment/terms actually be?  Do you qualify for a principal reduction, a lower rate or a combination?  The approval formula will dictate what you qualify for-so you can find out if the modification will save you money or be a benefit.

    Income,Expenses Computed

The Bank of America RMA is carefully reviewed and based on all of the information you provide, a determination will be made if you pass the approval formula or not.  If you need help to figure out this formula, you may want to use a program that will automatically compute and show you how to work on your own income & expenses.  The Loan Mod Calculator will compute and display a PASS or FAIL for income, expenses, debt ratio, target payment and Waterfall-you can see how to make your adjustments so that your RMA form will have the best chance of meeting the approval formula.  Get more helpful information at MyLoanModificationCenter.com

Bank of America RMA Form-How to Report Your Gross Income

Posted by admin On January - 17 - 2013

The Bank of America RMA form requires you to report your monthly gross income-while this may seem simple it is really the most critical part of the entire loan mod process-be careful because if you don’t know how much to show you may be denied immediately.  Here are some tips to help you learn exactly how to know what you should report.

RMA GROSS INCOME REQUIREMENTS:

  1. Household gross income includes the borrowers income, any non-borrowers who live in the home and contribute each month, rental income from other properties owned, pensions, social security and room mates.
  2. Income like pensions and social security where taxes are not deducted will be grossed up by 25% for the Bank of America approval formula.
  3. The TOTAL gross monthly income reported is used to determine your debt ratio, your new modified mortgage payment and if you pass the important WATERFALL trigger for approval.
  4. You must be prepared to document all income that you report on the Bank of America RMA form-either with pay stubs, bank statements, canceled checks, award letters, etc.

The MOST important thing to know is exactly how much total gross income you need to report to the bank-if you show too little or too much you will be immediately denied.  If you need help to figure this out, you can use a tool created

Computes your Budget Figures

for homeowners, the Loan Mod Calculator. It is a simple but very effective tool that will automatically compute and display your own specific budget requirements.  This will help you to make the necessary adjustments to your income before you submit your RMA for approval review.

Bank of America New RMA Form-More Details Required Now

Posted by admin On October - 2 - 2012

New RMA Form

The Bank of America RMA form has been updated again-when you apply for a loan modification you are required to complete this specific form.  The new RMA is 7 pages long, quite a jump from the previous 4 page form.

Here are the important things you need to know when completing this application:

  1. Bank of America will carefully review all the information you provide on the RMA to determine if you meet the approval guidelines-so make sure you take your time and complete it correctly-especially your monthly budget information on page 2 of the form.  Don’t report too much or too little monthly income.

  2. The new RMA is more detailed and has a section for rental/investment/second home modification information, including a property schedule.  Now that HAMP allows these type of properties, the application provides an area to provide details on the mortgage, expenses and rents received.  This information will be used by Bank of America to determine if there is a hardship.

  3. The application form also includes several certification sections, including the Dodd Frank, Hardship Affidavit, rental property certification and borrower acknowledgement and agreement.

Remember, the information that YOU provide on this form will be used by

Your Budget-APPROVED!

Bank of America to approve or deny your loan modification.  How do you know what you should report on the RMA in order to pass the approval guidelines?  This is the tricky part and the reason that over 75% of borrowers are turned down.

Make sure that your monthly budget worksheet shows the acceptable amount of income, expenses and assets.  These are critical approval triggers-your debt ratio, asset ratio, cash flow, loan to value and other criteria will be analyzed by the bank.  Verify your budget will pass before you submit, you can use the Loan Mod Calculator to show you where you need to make adjustments ahead of time.  Once the Calculator shows a PASS for all categories, transpose those figures onto the RMA for submission.

Get real help to complete your Bank of America RMA, use the #1 selling resource for homeowners.  The Complete Loan Modification Guide kit and

Calculator Incl-Download immediately!

Loan Mod Calculator was designed specifically for homeowners-it mimics the approval triggers for HAMP and will compute and display a PASS or FAIL for your specific budget requirements.  Make sure you submit correctly-visit MyLoanModificationCenter.com today.

WHY?

It’s really bad news when your Bank of America loan modification is denied-the letter telling you that the bank will not approve your application can be devastating to receive.  However, you can turn that denial into an approval if you know how to fix the problem that caused this to happen.

Your Bank of America loan mod was turned down because of something that you wrote on the RMA form-that is the official application that you completed and sent in for review.  Keep in mind that the underwriting process is very strict, and that it is your job to make sure that the information you provide BofA PROVES that your financial situation fits right into the approval guidelines.

Here are some steps that you can take now to fix your Bank of America RMA form, and resubmit it – and get approved the second time:

  1. First, carefully read the denial letter-it will tell you WHY you were denied.  The most common reason is because the GROSS INCOME you reported was either too high or too low.  This affects your debt ratio, your target payment and the Waterfall Modification formula.  If you fail these, you will also fail the NPV test, causing denial.
  2. Find out EXACTLY how much monthly gross income you need to pass

    Your Budget-APPROVED!

    the approval guidelines-you can use the Loan Mod Calculator to compute this for you automatically.  You may need to increase or decrease your income figure-this is critical so make sure you know how much income to report.

  3. Fine tune your monthly household expenses-this affects your monthly cash flow and shows Bank of America if you are truly in a financial hardship situation.  After you pay all of your current bills and mortgage your cash flow should be barely breaking even or a negative.
  4. Now, make sure your AFTER MOD cash flow is a positive number-you should have at least $250 left over each month after paying all your bills and the NEW modified mortgage payment.  You need the LOAN MOD CALCULATOR to help you figure this part out-this tool will automatically show you where and how to adjust your figures.
  5. Once you have all of your adjusted budget figures and the Calculator shows a PASS for all 7 approval triggers, transpose those new numbers onto the Bank of America RMA form-and re-submit for review a second time.
  6. Be sure to call the bank, verify that they have received your new information and most importantly, that they have input it all correctly into their system!

Are you ready to turn that Bank of America loan mod denial into an approval?  It takes preparation, determination and most of all the specific budget figures need to pass the guidelines.  Don’t take NO for an answer-you deserve a loan workout and it is possible to get approved-you just need to show them what they need to see!

Don’t try to guess-get the REAL answers you need to re-apply correctly. Use the #1 selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Calculator.  Designed specifically for homeowners,

Calculator Incl-Download immediately!

this program will automatically compute and display your own specific budget requirements-income, expenses, assets, debt ratio, cash flow and Waterfall will all be computed for you.  Visit MyLoanModificationCenter.com today and get it done right.

Bank of America RMA Form-Confused? Tips to Follow

Posted by admin On August - 21 - 2012

Apply Correctly

When you apply for a Bank of America loan modification, one of the first steps is to complete the RMA form.  This is the official application and it is 4 pages long.  The bank uses the information that you provide on this form to determine if you qualify for help-so read these tips so you don’t get confused and complete it wrong!

Bank of America RMA TIPS:

  1. The financial worksheet on page 2 is the most critical part of the application-take your time on this.  You may need to make some adjustments so that your income, expenses and assets pass the approval guidelines.

  2. Find out exactly how much gross monthly income you need to report on the RMA-this figure is used to determine if you pass the Debt Ratio

    Your Budget

    and Target payment guideline.  Too much or too little income will sink the deal.  To find out your specific income requirement, use the Loan Mod Calculator-it will instantly compute how much income you should report.

  3. Double check your household expenses-you must itemize what you spend monthly on items like groceries, auto expense, insurance, utilities, etc.  This information tells Bank of America if you are facing a hardship, if your current cash flow is acceptable and if a loan modification will be a good solution for you.Your current cash flow should be barely breaking even, and AFTER Mod cash flow should be at least $250 positive each month.  The Loan Mod Calculator will show you what your cash flow is and where to adjust it.

  4. NEVER disclose your financial information until you have double checked your budget figures and KNOW that you meet all the guidelines.  If the bank calls before you have time to do this, say “I am not prepared-I will have to call you back” or something along those lines.  Once you give them bad budget figures it is very hard to overcome!

The Bank of America RMA form needs to be completed RIGHT-your budget figures must prove that your situation fits right into the loan modification underwriting guidelines.  Most homeowners get this part wrong, and that is the #1 reason for loan mod denial.  Make sure you get it right if you hope to get approved for the help you need and deserve.

Get help to complete your Bank of America RMA form-use the #1 selling resource developed specifically to help homeowners apply correctly.  The

Calculator Incl-Download immediately!

Complete Loan Modification Guide kit and Loan Mod Calculator will give you the specific requirements for your income, expenses, assets, cash flow, etc.  Use this info to complete your application-avoid mistakes, save time and frustration.  Visit MyLoanModificationCenter.com today.

Apply Correctly

Don’t let the Bank of America RMA form scare you-although it looks simple, your loan is either approved or denied based on how you complete this form.  In order to qualify for help, you need to show’em exactly what they need to see-your financial information on page two of this form is critical.  You need to know just what to show them so that you prove you are the perfect candidate and get approved for your loan workout fast.

Unfortunately, Bank of America will not tell you how to fine tune your budget figures to qualify-and this information is critical to acceptance.  Remember, no matter how deserving you are, all the bank cares about is the “math”-do you fit into the tiny “box” for approval?

Here is what you need to know:

  1. How much monthly Gross Income you need:  if you show too little or too much you will not pass the approval guidelines.  Your gross income is used to determine your current debt to income ratio, and it is also used to determine your new target modified mortgage payment.  You need to know ahead of time if you need a bit more income so you can make the adjustments before you apply-verify your own income with the Loan Mod Calculator.  This system will show you immediately if you are Passing or Failing, so you can revise your figures before you submit.
  2. Are your monthly household expenses acceptable?  You must break down your monthly bills for Bank of America, listing items like utilities, groceries, insurance,

    Budget Requirements Displayed

    medical, etc.  The goal is to show them that you are barely making it now, or even at a negative each month.  But just as importantly, you must prove that if given a loan mod, you will be able to afford the new payment and have a bit of money left over each month after paying all of your expenses.  This proves you will not be a risk of re-default.  This can be tricky to figure out, but run your figures through the Loan Mod Calculator and see instantly where you need to make adjustments.

  3. Assets:  What is your Asset Ratio?  Did you know that Bank of America uses a formula to determine how much you are allowed to have in liquid assets?  Checking, savings, money markets, CD’s (any non-retirement account) will be verified and if you don’t pass this guideline you will be turned down.  Learn how much you can report with the Loan Mod Calculator ahead of time.

It’s pretty simple-show Bank of America what they need to see on your RMA form you have a very good chance at loan modification approval.  Otherwise, you won’t qualify and the help you need will be denied.  Remember, it’s about the “math”, getting a loan workout is an underwriting process with standard formulas and methods-you must prove you pass these or there goes your chance for assistance.

Calculator Incl-Download immediately!

You need real answers now-get them with the #1 selling resource designed specifically for homeowners.  The Complete Loan Modification Guide kit and Loan Mod Calculator will automatically compute and display your very own budget requirements-showing you PASS or FAIL for your income, expenses and assets.  This gives you the information you need to fine tune your budget before you submit it for review.  Visit MyLoanModificationCenter.com today and get started now.

RMA List

Do you know how to complete the Bank of America RMA form to make sure you get approved for a loan modification?  This is harder than it sounds, because unless you show the bank exactly what they need to see on this application, you will be turned down for a loan workout. Here is a quick checklist of the most important homeowner requirements for approval to help you avoid mistakes and increase your chances of success.

BANK OF AMERICA RMA FORM CHECKLIST FOR HOMEOWNERS

  1. Monthly Gross Income-Make certain that the amount you list on page 2 of the RMA form will pass the guidelines.  You cannot show too much income or too little income-otherwise you will fail the requirements for debt ratio and you will not pass the Waterfall Method criteria.  You can verify how much income you need to report by running your budget through the Loan Mod Calculator, a tool for homeowners use.
  2. Monthly Household Expenses-verify that the bills and expenses you list prove to the bank that you are barely making it each month, but also prove to Bank of America that a loan modification will be a solution for you.  Your pre-mod cash flow and post mod cash flow must pass the requirements-you can double check that your expenses will be acceptable by using the Loan Modification Calculator, then make any necessary adjustments before submitting to the bank.
  3. Asset Ratio-make sure that your assets pass this important criteria and prove to Bank of America that you have exhausted all other options and can no longer

    Budget Requirements Displayed

    afford your mortgage.

  4. Hardship Letter/Hardship Affidavit-the RMA form has 4 options for you to choose from:  loss or reduction in income, high monthly debts, lack of reserves, increased expenses.  You can also write a more detailed explanation of your financial hardship on a separate sheet of paper, be sure to keep it brief and sign it before you attach it to the application.
  5. Proof of income reported-you must provide proof to Bank of America for any income you report on the RMA form.  Pay check stubs, canceled checks, bank deposits, award letters, bank statements, etc.  Everything must match up or they won’t count the income correctly.

There is only one way to get approved for a Bank of America loan modification-complete your RMA form so that it proves in black and white that you are the perfect candidate.  Showing just the right budget figures is the secret to success-take the time to verify that your income, expenses and assets will all pass the requirements for approval before you submit your application.

Calculator Incl-Download immediately!

Get the real answers you need-use the best selling, #1 resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Calculator.  This powerful system will automatically calculate and display your own specific budget requirements for income, expenses and assets.  Use this critical information to help you prepare your RMA correctly for fast approval.  Visit MyLoanModificationCenter.com today.

Bank of America RMA Form-Program Requirements Explained

Posted by admin On December - 20 - 2011

Apply Correctly

The secret to loan mod success is understanding the program requirements so that you can complete the Bank of America RMA form correctly.  Most homeowners don’t know or understand just what the bank needs to see, and so they end up getting it wrong and then getting turned down.  Here are some important key points to know when you complete your application:

  1. Take your time completing the monthly budget financial worksheet part of the RMA form-this is on page 2 and is really the most critical part of the entire process.  Before you disclose any of your income, expenses or asset make certain that you have made any necessary adjustments so that you pass the guidelines.
  2. The underwriting approval guidelines state that you must show enough monthly income to pass the Waterfall Method of Modification-this means that your new modified target payment can be achieved using the standard methods-reduce the interest rate, extend the loan term or reduce the principal balance.  Make certain your monthly income will pass the guidelines-verify it first by running your budget through the Loan Modification Calculator.  The Calculator will show you Pass or Fail.
  3. Bank of America will also check your monthly household expenses-your goal is to show that you cannot make ends meet now but will be able to afford to pay and maintain the new modified mortgage payment.  Your current cash flow must evidence a hardship, and your cash flow after the loan mod must prove that you will be able to afford the loan.  The Loan Mod Calculator will instantly compute your cash flow for you, and show you how to make any necessary adjustments.

    Exact Requirements

  4. There is also an Asset Ratio requirement-this has to do with your liquid assets and the program only allows you to have a certain amount of funds available.  Verify that you pass this before submitting your RMA form for review-the loan modification calculator will compute this for you.

It’s really pretty simple-complete your Bank of America RMA form so that it proves in black and white that you are the perfect loan modification candidate and you have a very good chance of getting approved.  Remember, the perfect RMA shows just the right amount of monthly income, monthly expenses and assets.

Get the real answers you need-use the #1 system designed specifically to help homeowners prepare their RMA form-The Complete Loan

Calculator Incl-Download immediately!

Modification Guide and Loan Mod Calculator.  The program will automatically compute and display your specific budget requirements for you.  Visit MyLoanModificationCenter.com today.

Apply Correctly

Watch out! Bank of America will be carefully reviewing your RMA form to determine if you pass the requirements for loan modification approval.  The financial information you provide on this form will in large part determine if your loan workout will be successful-it is critical to know the exact requirements for your specific situation in order to have the best shot at approval.

What are the Bank of America loan modification requirements?  The most important one is that your financial worksheet information be acceptable-this means that your monthly income, monthly expenses and assets all fit right into the program guidelines.  Most homeowners are confused by this part-just how much monthly income do you need to qualify?  What should your monthly expenses be?  How about your assets-how are they listed?

BANK OF AMERICA RMA TIPS

Tip of The Day

  1. Make sure that your monthly income is acceptable-it cannot be too high or too low – otherwise you will be denied.  You can learn just how much income is required for your specific loan situation by running your figures through the loan modification calculator-a system designed specifically to assist you with preparing your monthly budget figures.
  2. Fine tune your monthly expenses so that you prove to Bank of America that your current mortgage is not affordable-your cash flow before the loan mod must document a financial hardship.  But, just as important you must have a positive cash flow after the loan mod-otherwise you will be turned down.  Verify your expenses are acceptable with the loan modification calculator-you will see instantly if your cash flow is acceptable and where you may need to make adjustments before you submit your application.
  3. Make certain the assets you list will not throw you out of the plan-your checking, savings, CD, money market accounts must be listed.  You must pass the Asset Ratio Test-the loan mod calculator displays this for you automatically.

Exact Requirements

You may be the most deserving borrower, but if you don’t complete your Bank of America RMA form correctly then a loan modification will not be offered.  Knowledge is the key-know and use the same formula the bank will use.  The loan modification calculator mimics this important formula, and gives you the specific budget information you need to know ahead of time.  It’s all about the math-and the more you know the better your shot at success.

You can get the real help you need-use the #1 resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod

Calculator Incl-Download immediately!

Calculator.  This powerful system was designed to help borrowers learn how to prepare their financial worksheet correctly.  Avoid mistakes, save time and frustration.  Visit MyLoanModificationCenter.com today.