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
- 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.
- 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
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.
- 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.
- 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.
- 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.