Loan modification with bank of America
If you are one of the home owners who are falling behind on your payments then you must know the options available to stop foreclosure. Below listed are some of the options to stop foreclosure.
1) Forbearance
2) Loan modification
3) Repayment plan
This options help in retention of home ownership by bringing the loan current or provide relief till they can be reinstated.
With just about every company bank of America has came up with loan modification program for its customer who are unable to pay their loan payments because of default credit history, poor market conditions and financial crisis.
Bank of America loan modification is all about revising the existing loan with some changes in the existing terms and conditions of the loan. The features of the home loan modification include no late fee, no foreclosure charges, reduced interest rate and principal increased term and decrease in monthly payments etc.
Bank of America has come up with an exiting program to ease home owner’s problems and troubles related to foreclosure.
1) Adjustable rate loan: bank of America adjustable rate program offers you lower interest rate initially for fixed period may be for 5 or 3 years and then change in the interest rate, after completion of the initial tenure. Depending on the market conditions your interest rate may increase of decrease in future.
Bank of America options for adjustable rate loans are:
5/1 ARM: in this option your interest rate will be fixed and will be low for this loan and then changes every year till it comes to its original rate and increase by 1 percentage points.
3/1 ARM: in this option your interest rate will be fixed for 3 years with lower interest rate and then changes every year by one percentage points till it comes to its original rate.
2) 30 years fixed rate program: in this type of program interest rate remains unchanged through out the life of the loan. It never changes even if the market scenario changes.
This is suitable for those who are willing to pay lower EMI of the loan.
3) 40 years fixed rate program: in this type of program interest rate remains unchanged through out the life of the loan. Here you have to pay more interest as the loan is extended for longer period. This is suitable for those who can afford for lower EMI of the loan.
How to approach, bank of America for loan modification? Here are some of the guidelines on how to approach for successful loan modification with bank of America.
First go through the guidelines of bank of America to check whether you are eligible for loan modification. Even if you are an existing customer, you may not be eligible under some circumstances for loan modification. It is better check before you apply in order to avoid rejection at latter stage.
Speak to concerned department. Call up the bank of America customer service department and tell them about your hardship and interest in loan modification.
Never give an incomplete file. Arrange all the documents required by the bank of America for modification of the loan in a file. Make sure that you are having all the documents from income to expenditure and credit card statements etc.
Prepare a hardship letter: your hardship letter must be compiled with bank of America guidelines. A hardship according to bank of America is a situation which makes the borrower financially in capable to pay the loan amount. It includes death, job loss, accident etc.
Never provide any wrong information. Bank of America will scrutinize documents thoroughly, if you are found of submitting fake documents then your application will be rejected.
Bank of America does not help anybody with loans modification. I had try to do one for the las 2 months. Every time I called I spend about an hour on the phone being transfer over and over and I always end up being hung up on.