Bank Of America Loan Modification How The Hamp Act Can Help You

Bank Of America Loan Modification – How The HAMP Act Can Help You

By: - Mortgage - November 21, 2011
bank of america loan modification how the hamp act can help you

Millions of Americans are currently facing a harsh reality. They cannot pay their mortgages and risk losing their homes because of missed and late payments. If you are one of these Americans and are wondering if you may be eligible for a Bank of America loan modification through the HAMP act, you have come to the right place. First, however, you should learn about what HAMP is.

The HAMP Act, or Home Affordable Modification Program, is not so much an Act itself, but is part of a larger program called the Making Home Affordable Program which was part of the even larger official act, the Financial Stability Act of 2009. The HAMP Act is generally known as HAMP and it was created to offer incentives to lenders in order to bring affordable mortgage payments to those who have borrowed from them and are struggling. Bank of America is one of the lenders that is participating in the program and if your mortgage is through them, you should find out if you meet the basic requirements of this through Bank of America.

The basic requirements for Bank of America loan modification using this program is that you own your home and it is your primary residence, you have made at minimum 4 total payments on the loan, you have difficulty paying your mortgage and the total payment each month is greater than 31% of the gross income you have. Looking at these basic requirements a bit more closely and in more detail, you will need to live in your home. That should be self-explanatory and you should have had made at least four full payments to Bank of America for you loan. There are a few reasons that are acceptable under the HAMP program for not being able to pay your mortgage. These are instances like getting higher interest rates, getting a reduction in pay or having things like medical bills pop up unexpectedly. Unemployment is not one of the acceptable reasons for HAMP, but there is a separate program under the Financial Stability Act of 2009 called the Home Affordable Unemployment Program. If you are unemployed and seeking assistance, that is the program you should apply under. Finally, your total mortgage payment has to be more than 31% of your income.

If you think you may be eligible for Bank of America loan modification through this program, there are four main steps you will go through. The first step is to contact Bank of America and request an assessment. You will explain that you want the FHA Home Affordable Modification assessment and the company will review your information. They will look at your situation and confirm if you indeed meet the basic requirements. If you do meet them, you will be sent a packet with several financial forms that will need to be filled out.

When you get the packet from Bank of America, you will need to fill out these forms using your most current financial information and get the information back to them as soon as possible. The sooner you get it back to them, the sooner you can move on in the process.

If you qualify for the program after you have sent in your financial information, you will enter a 3 month trial period. There is a trial period so that is can be established if you can make the new payments. If you make all three payments in the trial period, the modified payments will stick. You will get a Modification Agreement from Bank of America which needs to be notarized and returned. Once that is done, the new agreement will be considered permanent.

There are no fees or any type of minimum credit score for the program but there may be servicing fees involved. As long as you meet the basic requirements, you may be eligible. The only way to know is to contact Bank of America today.