Home Loan Assistance Frequently Asked Questions

Yes. If you’re struggling to keep current on your mortgage, or you’re already behind on your payments, the Home Affordable Modification Program provides mortgage lenders with financial incentives to modify existing mortgages. This government program was developed to help homeowners avoid foreclosure.

If you are seeking assistance under the Home Affordable Modification Program and your loan is not currently owned by Fannie Mae or Freddie Mac, we may still need to seek approval from the investor of your loan.

In order to apply for a loan modification under the Home Affordable Modification Program:

• your home is your primary residence and you are currently living in it
• the amount you owe on your first mortgage is equal to or less than:
  
  • $729,750 for 1 unit
  • $934,200 for 2 units
  • $1,129,250 for 3 units
  • $1,403,400 for 4 units
• you are experiencing a financial hardship, such as a job loss, divorce or medical emergency
• your current mortgage was taken out before January 1, 2009
• your payment on your first mortgage (including principal, interest, taxes, flood and hazard insurance, and homeowners association dues, if applicable) is more than 31% of your current gross (before taxes and deductions) monthly income

Staying current on your payments is the best way to maintain your credit. However, if you need to enter into a modification, your credit may be negatively impacted. Your loan will be reported as paying under a partial payment plan during the trial plan, and as modified after the final modification agreement. Credit scores are determined by the credit bureaus and not controlled directly by Bank of America beyond our commitment to accurately report the status of all our customers. Visit the Federal Trade Commission Opens a new window for more information about your credit and how to improve it.

No. If you're struggling now, or believe it will soon be difficult for you to make your mortgage payments on time (you may hear this referred to as an "imminent default"), you may qualify under the Home Affordable Modification Program. As a homeowner, you may find yourself in this situation because of a significant increase in your mortgage payment, a significant reduction in your household income, or some other hardship that makes it difficult to pay your mortgage. You will be required to document your income and expenses and provide evidence of the financial hardship.

Yes, but only your first mortgage is eligible for the Home Affordable Modification Program at this time.

If you report a hardship, we will:

• determine whether your loan meets the minimum eligibility criteria
• assess the current income, assets and expenses for everyone listed on the loan, as well as any specific hardship circumstances to determine if you are unable to make your mortgage payment
• determine if your monthly first mortgage payment is greater than 31% of your monthly gross (before taxes) income
• if the modified loan is of greater than 105% of your home’s value, Bank of America must offer you a modification under the Home Affordable Modification Program. (Once you agree to the modification, you are placed on a trial basis (typically three months) at the new payment level)
• if you successfully make all of the required trial payments and the income and expense information you provided are accurate based on the documentation you submit during your trial period, we will make the modification permanent

NOTE: You will be required to sign the modification agreement and other documents and attest that all of the information you provided is true and accurate. Misrepresenting any information required for the Home Affordable Modification is a violation of federal law and has serious legal consequences.

Yes. All loans modified under the Home Affordable Modification Program must include future property taxes as well as homeowner’s and, if applicable, flood insurance, unless prohibited by state law. You, as the homeowner, are directly responsible for paying these costs.

To demonstrate that you can make these tax and insurance payments on time, you’ll have to place sufficient funds to cover the cost of them in an escrow account. These funds will be collected to make the monthly payments. Please be aware that this reserve amount cannot be added to the modified loan amount.

If you already have an escrow account with your existing loan, you don’t have to do anything else. If not, your lender will open one for you.

Remember, the most important thing is to keep paying during the trial period and succeed in turning the trial into a permanent modification. However, if you can’t make three payments by the end of the trial period, you lose your eligibility for a modification under the Home Affordable Modification Program. If this happens, don’t give up. You may be eligible for other foreclosure prevention options; be sure to call us at 1.800.846.2222 as soon as possible.

Modifications under the Home Affordable Modification Program are free to homeowners. Because these modifications are typically designed for people who are behind on payments or at risk of foreclosure, those who qualify will not be required to pay a modification fee or pay late fees.

If there are costs involved like back taxes, we will give you the option of adding that sum to your new mortgage amount. If you are able to pay some of these expenses upfront, it will reduce your new monthly payment and save interest costs over the life of your loan.

All services by a HUD-approved housing counseling agency are provided free of charge. Beware of any individual or organization that wants to charge an upfront fee for housing counseling or modification of a past due loan. Also, beware of any organization that claims to guarantee success. These are all indications of potential scams.

Although it is not required, if you are behind, or close to being behind on your mortgage, we strongly encouraged you to contact a loan specialist to help you understand all available options and create a workable budget.

However, counseling for homeowners is required if your total monthly debts are very high in relation to your incomes. We will analyze your monthly debts, including the amount you will owe on the new mortgage payment after it is modified, as well as payments on a home equity loan or line of credit, car loans, credit cards, alimony or child support. If the sum of monthly expenses is equal to or more than 55% of your gross monthly income, you will be required to meet with a HUD-approved housing counselor as a condition of getting a modification.

Yes it’s true. They’re called “success incentives.” For every month you make a payment on time, you’ll receive the “success incentive” that reduces the principal balance on your loan. This incentive will be applied directly to your loan balance annually. The incentives are given over five years and could total up to $5,000. These incentives were added to help you build equity in your home faster.

However, these incentives are only paid to those borrowers who are current on the mortgage payments. If you fall behind by 3 months and make no payments, you will no longer be eligible for these incentives and any “success incentives” that you have accrued will not be paid.

It is possible, but not likely. The primary objective of the Making Home Affordable program is to help you avoid foreclosure by—as its name suggests—modifying your loan to make it more affordable. Depending on your circumstance, your modification might be a reduction of the principal you owe, a reduction of your interest rate, a lowering of your monthly payments by extending the length of your loan or a combination of any of these.

To modify your FHA loan you need to apply under the FHA Home Affordable Modification Program – which was developed specifically for homeowners with FHA loans.

This program is managed through your lender; you’ll call them for an application. If Bank of America is your lender, call us at 1.800.846.2222 and ask for Home Affordable Modification program information. We’ll review your situation, confirm that you meet the requirements for this program and then send you a financial information packet.

Call us today at:
1.800.846.2222
8am-12am EST Mon-Fri
8am-8pm EST Sat
3pm-12am EST Sun

After you call us, you’ll receive the packet. You’ll need to complete the enclosed financial forms and submit proof of income and residency.

The following forms must be filled out and signed by all borrowers listed on your loan.

• Request for Modification and Affidavit (RMA) form.
• IRS Form 4506-T Request for Transcript of Tax Return (only one required if you file your tax returns jointly).

You must also sign the form below if your loan is not owned by Fannie Mae or Freddie Mac. (How do I know?)

• Dodd-Frank Certification Form—a form certifying compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act

You can expect to hear back from us within 10 business days from when we receive all your required documents. The purpose of contacting you is to confirm receipt of your information, as well as let you know how the evaluation process works and how long it takes. If documents are missing, we may contact you to let you know what information you need to send us.

If you are in foreclosure proceedings, or your home has been scheduled for a foreclosure sale, contact us today at 1.800.846.2222, 8am-12am EST Monday-Friday, 8am-8pm EST Saturday, 3pm-12am EST Sunday, if you haven't done so already so we can provide you with all of your available options. We want to help you keep your home.

If you have any questions or would like to talk to a HUD-approved housing counselor, call 1.888.995.HOPE (4673).

If it seems too good to be true, it’s most likely is a scam. Unfortunately, foreclosures are a matter of public record and your information is available to anyone once the case is filed with the courts. No matter how “real” these people and websites may seem, they are most likely not acting in your best interests and trying to take advantage of your situation.

If you receive a letter, a personal visit or even land on a website that asks for money up front, contact us immediately at 1.800.846.2222. We can help you determine how legitimate these offers are. Do not sign anything before you talk to us.

If you qualify for a Military Modification, your loan may receive some or all of the following changes:

• Principal Forgiveness: The outstanding principal balance may be reduced to equal no more than the current market value of the property.
• Interest Rate Reduction: The interest rate may be reduced either permanently or temporarily.
• Term Extension: The final due date of the loan may be extended and loan payments recalculated over this longer period of time.
• Forbearance: We may postpone repayment of a portion of your unpaid principal balance until the loan’s maturity, repayment or refinancing—or until there’s a property sale or other transfer of title. The postponed amount will be interest-free.

Please note: Before you enter into a loan modification, you should consult a tax professional to understand any tax implications that may be associated with receiving a modification.

If your loan is not eligible for a Military Modification, you will receive a letter explaining the reason why your loan did not qualify. We will also automatically review your information for other foreclosure prevention options. If any additional information is needed to review your eligibility, you will receive a letter requesting this information.

Active duty military personnel are protected from the start or advancement of foreclosure proceedings while receiving benefits under the Servicemembers Civil Relief Act (SCRA).

If you are not protected under the SCRA:
We will not start or advance foreclosure proceedings while your loan is under review for a loan modification. The evaluation process begins when we receive all documents we have requested from you. No foreclosure sale will be conducted and you will not lose your home during the evaluation.

We do not charge fees for a modification. However, third party fees such as attorney fees, recording fees, etc. may apply and you will be responsible for payment.

Yes. Staying current on your payments is the best way to maintain your credit. However, if you need to enter into a modification, your credit may be negatively affected. Your loan will be reported as “paying under a partial payment plan” during the trial period, and as “modified” after the final modification agreement. In addition, if you are behind on your payments when you start your trial, your loan will be reported as “delinquent” until your loan has been permanently modified, even if you are making your trial payments. A modification is intended to enable you to keep your home.

Credit scores are determined by the credit bureaus and not controlled directly by Bank of America. Our commitment is to accurately report the status of all our customers. Learn more opens a new window about credit scores and reports.

Delinquent borrowers are strongly encouraged to contact a Department of Housing and Urban Development (HUD) approved counselor to understand all of the available options and to create a workable budget. However, housing counseling is only required for borrowers whose total monthly debts are very high in relation to their incomes. It is voluntary for other applicants.

When you apply for a modification program, we will evaluate your monthly debts, including the amount you will owe on the new mortgage payment after it is modified, as well as payments on a second mortgage, car loans, credit cards, etc. If the sum of all of these recurring monthly expenses is equal to or more than 55% of your gross monthly income, you must agree to participate in housing counseling provided by a HUD-approved housing counselor as a condition of receiving a modification.

No. If you're struggling now, or believe it will soon be difficult for you to make your next mortgage payment on time due to a hardship (you may hear this referred to as "imminent default"), you may qualify under the FHA-HAMP Program. As a homeowner, you may find yourself in this situation because of a significant increase in your mortgage payment, a significant reduction in your household income, or some other hardship that makes it difficult to pay your mortgage. You will be required to document your income and expenses and provide evidence of the financial hardship.

In most cases, your initial interest rate and payment will be lowered, and the new amount will depend on your specific situation. The particular methods used to lower your payment will be specified in your modification agreement.

Yes. We will review your eligibility for all programs, including the Home Affordable Second Lien Modification Program.

It may be possible, depending on your loan and circumstances. Please call us at 1.866.880.1232 to discuss your options.

Because you would sell your home for less than the loan amount in a short sale, you will not receive any money from the sale of your home. However, as part of the Home Affordable Foreclosure Alternatives program, you will receive $3,000 after the completed sale of your home to help you with your relocation expenses.

Depending on your circumstances, you may be given additional time to market your home. If additional time is not given, you can still settle your mortgage debt by signing your home over to us in a deed in lieu of foreclosure.

There are benefits to doing a deed in lieu of foreclosure over a foreclosure. A deed in lieu of foreclosure spares you from having to go through the public auction or sale of your home. A deed in lieu of foreclosure generally takes less time to complete than a foreclosure, so your reported delinquency could be shorter than it would with a foreclosure. As a result, your credit will likely improve faster than it would if your house goes to foreclosure.

If you sign your home over to us in a deed in lieu of foreclosure, you may be eligible to receive up to $3,000 to help you with moving, rental and relocation expenses.

Forbearance is granted for a set period of time. But in many cases where resolving your hardship is dependent on an outside third-party, like an insurance company or getting hired after a period of unemployment, we may be able to extend the forbearance period to accommodate your situation. The additional missed payments and interest will be added to the total amount you will need to repay.

You may still be eligible to receive forbearance if both your first and second mortgages are with us. If you have your second mortgage with another lender, we may not be able to grant forbearance unless that lender also agrees to forbear the second mortgage payments as well.

Bank of America offers a variety of home loan modification programs that address the different circumstances of our customers, including underemployment, military service and more. You may want to discuss whether you are eligible for the federal government’s Home Affordable Modification Program and other programs. You can call us at 1.800.846.2222 to speak with a specialist.

The federal government and the owners of the loans we service set their own guidelines and eligibility requirements for these modification programs. Each program will have its own criteria for eligible loans as well as its own method of modifying the loan. We will review your loan to see if your loan is eligible for modification programs that are available.

Yes. Staying current on your payments is the best way to maintain your credit. However, if you enter into a modification, your credit will be negatively impacted. Your loan will be reported as paying under a partial payment plan during the trial period, and as modified after the final modification agreement. In addition, if you are behind on your payments when you start your trial, your loan will continue to be reported as “delinquent” until your loan has been permanently modified, even if you are making your trial payments. Making a payment in excess of the trial amount in order to protect your credit may instead indicate that you are not in need of assistance and prevent us from permanently modifying your loan.

Credit scores Opens a new window are determined by a customer’s credit history and not controlled directly by Bank of America. Our commitment is to accurately report the status of all our customers.

We do not charge fees for a modification. However, you may be responsible for expenses paid by the Bank to third parties in administering your loan, such as attorney fees, recording fees, etc.

The Hardest Hit Fund is made up of funds allocated by the federal government to specific states hardest hit by the recent economic downturn and is intended to help homeowners faced with financial hardship.

If you have not yet completed a short sale or deed in lieu, you may still be eligible for one of the Hardest Hit Fund programs.

Please check the participating states chart to determine if your state is currently part of the Hardest Hit Fund program. If so, visit your state’s Hardest Hit Fund website as soon as possible for more information on how to apply.

If you live in Arizona, California, Nevada or Rhode Island and are interested in the Hardest Hit Fund Principal Reduction Program, you will need to apply for the Home Affordable Modification Program. Please call us at 1.800.846.2222 to discuss your options.

Due to limitations in federal funding, new states are not likely to participate in the Hardest Hit Fund. If your state is not currently part of the Hardest Hit Fund program, it is unlikely to be approved for this program in the future. Our participating states chart can tell you if your state is currently part of the Hardest Hit Fund program.

If you live in one of the states participating in the Hardest Hit Fund Principal Reduction Program, call us at 1.800.846.2222 to discuss your loan modification options. If you are eligible, the financial information packet that you receive as part of your modification application will include a Third-Party Authorization that must be filled out and returned to us. We will then be able to review your eligibility for the Hardest Hit Fund Principal Reduction Program.

If you did not receive a Third-Party Authorization and live in a participating state, please call us and speak with a specialist.

If you are unemployed and call us to apply for a home loan modification, we may speak with you about the Hardest Hit Fund Unemployment Program, if your state offers it. In that situation, you may need to decide which type of assistance you wish to pursue because you may only take advantage of one program at one time.

Yes. When you call our specialists, be sure to ask the representative to evaluate both your first mortgage and your home equity loan or home equity line of credit. They’ll go over your financial information with you and compare it to all available loan assistance solutions. If you qualify, they can help you modify both your first mortgage and your home equity account.

Yes, you can. If you qualify, we will help you modify the home equity loan or home equity line of credit that you have with us. If you are having a financial hardship, we also recommend that you contact your first mortgage lender about modifying or refinancing that loan as well.

Yes, but only through one of our own Bank of America programs. In order to modify your home equity loan or home equity line of credit through the government’s Home Affordable Second Lien Modification Program (2MP), you must first complete a modification of your first mortgage under the government’s Home Affordable Modification Program (HAMP).

Staying current on your payments is the best way to maintain your credit score. However, if you need to enter into a modification, your credit score may be negatively impacted. Credit scores are determined by the credit bureaus and not controlled directly by Bank of America beyond our commitment to accurately report the status of all our customers.

Yes, one of our reverse mortgage specialists will be happy to create a property charges set-aside account for you. This account will set aside from each monthly payment one-twelfth of the annual amounts, as reasonably estimated by your loan servicer, for costs of property taxes and/or insurance and then make the payments for you automatically.

To see if you qualify for a set-aside account, or to set one up, you simply need to call one of our reverse mortgage specialists at 1.866.863.5224.

If you have withdrawn the maximum amount allowed on your reverse mortgage, you would have to return a portion of those funds in order for us to create a property charges set-aside account. If you do not have funds available but your home value has increased, refinancing your reverse mortgage may be a way to finance the set-aside.

The short answer is “yes.” But before you consider a short sale, there are many other options to explore, such as refinancing or modifying your home loan payments that could allow you to stay in your home with more affordable mortgage payments. Call one of our short sale specialists at 1.866.880.1232 to help determine other options for which you may qualify. They will work with you to help determine your best course of action.

Yes. Depending on your circumstances, it’s possible to do a short sale all the way up until the day of foreclosure.

Because of the number of people and amount of paperwork involved in a short sale, it can take longer than a traditional home sale. Typically it takes 45 to 90 days after the initial offer is accepted to finalize, although timelines can vary based upon current market conditions and your particular circumstances.

No. Because Bank of America and other parties are receiving less than the total amount owed to pay off your property, all the proceeds of the sale go to satisfying that debt.

No. You can work directly with us to process your deed in lieu of foreclosure.

No. A deed in lieu must be processed with the lender that holds your mortgage or the company to which you make your monthly payments.

If you have a second lien on your house (also known as a home equity loan or a home equity line of credit), you need the lender’s approval to proceed with a deed in lieu. In order to be approved for a deed in lieu, the title to the property must be clear. If your second lien is with Bank of America, we will complete your Second Lien Release form and work to get approval for your deed in lieu request. If your second lien is with another lender, you will need to contact them and request a Second Lien Release form. The lender needs to provide this form, sign it to indicate that they approve of the offer, and send it to you.

The length of time depends on your loan and circumstances. It generally takes around 90 days from the date we receive your financial documents. Once approved, you will be given 14 to 30 calendar days to relocate.

Yes, there are alternatives to foreclosure. A short sale or a deed in lieu may both be better alternatives to a foreclosure. Contact a specialist right away to explore all your options.

Yes. While we review your eligibility for the program, your loan will not go to foreclosure sale. When you enter a trial plan under the program, your loan will not be referred to foreclosure, and any pending foreclosure proceeding will not go to sale.