Is a Home Affordable Modification right for me?
Program goal
Home Affordable Modification is one of the federal government’s Making Home Affordable programs. The government’s goal for modifying your loan is to make your monthly payments 31% of your gross (pre-tax) monthly income.
Eligibility
You may be eligible to modify your home loan under the Home Affordable Modification Program, if:
your home is your primary residence
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
Is your loan an FHA loan? If so, try modifying your loan under the federal government’s FHA Home Affordable Modification Program.
If you're not eligible for a Home Affordable Modification, other modification options may be available. Call us at 1.800.846.2222, 8am-12am EST, Monday-Friday; 8am-8pm EST Saturday; 3pm-12am EST Sunday, to find out more.
If we can't find a modification option that works with your budget, you may need to consider options that involve leaving your home. If your home is currently worth less than the amount remaining on your loan, you may be able to sell your home in a short sale. We offer programs—such as the federal government's Home Affordable Foreclosure Alternatives program—that provide a streamlined approval process and financial incentives to help you with relocation. By working with us to successfully complete a short sale, you may qualify for financing for future credit sooner than if you do nothing and allow your home to go through a foreclosure. In addition, you may be eligible for relocation assistance of up to $3,000 for moving, rental, and relocation expenses.
Program at a glance
Step 1: If you meet the minimum eligibility requirements, call us to request a Home Affordable Modification. We’ll review your situation, confirm that you meet the requirements for this program and then send you a financial information packet.
Step 2: Once you’ve received your packet, you’ll need to fill-out the forms and collect your documents. Sign and return the information to us as soon as possible. We can’t evaluate you for a trial modification without all of your required documentation.
Step 3: If you qualify for the program, you’ll enter a trial period of at least 3 months. Making all of your payments during this trial period will demonstrate that you can afford the modified payments and that they work within your budget.
Step 4: If you successfully make all of your Trial Period Plan payments, you will receive a Modification Agreement defining the changes. After this document has been signed, notarized and returned to us, your modification will be officially made permanent.
Get more details on the Home Affordable Modification Program.
There are no fees and no minimum credit requirements with the Home Affordable Modification Program, a part of the federal government's Making Home Affordable program.
How do I get started with a Home Affordable Modification?
Call us to request a Home Affordable Modification
When you call us to request a Home Affordable Modification, 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
Call Information Sheet » Opens a New Window.
To help you keep track of important deadlines and take notes during the call, please print out this form prior to calling.
After you receive the packet
When you 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.
Now that I’m in the process, what’s next?
If you’re already in the process of being evaluated for a modification of your loan through the federal government’s Home Affordable Modification Program, we can help you understand what you need to do next.
I have called and requested a Home Affordable Modification
If it was confirmed during your phone call that you meet the minimum eligibility requirements, we'll send you a financial information packet with forms to complete and specifying what additional information you'll need to submit.
I have requested a Home Affordable Modification
When you receive the packet, you’ll need to complete some 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 do not qualify for a Home Affordable Modification, other modification options may be available. Call us at 1.800.846.2222, 8am-12am EST, Monday-Friday; 8am-8pm EST Saturday; 3pm-12am EST Sunday, to find out more.
If we can't find a modification option that works with your budget, you may need to consider options that involve leaving your home. If your home is currently worth less than the amount remaining on your loan, you may be able to sell your home in a short sale. We offer programs—such as the federal government's Home Affordable Foreclosure Alternatives program—that provide a streamlined approval process and financial incentives to help you with relocation. By working with us to successfully complete a short sale, you may qualify for financing for future credit sooner than if you do nothing and allow your home to go through a foreclosure. In addition, you may be eligible for relocation assistance of up to $3,000 for moving, rental, and relocation expenses.
I have been approved for a Trial Period Plan
If you qualify, you’ll receive a Trial Period Plan Notice outlining the terms and the amount of your Trial Period Plan mortgage payments (our estimate of what your payments will be if your loan is permanently modified). To begin your trial period, you must either send us your first Trial Period Plan payment or call and make a payment over the phone at no additional charge. At this time, these payments cannot be made at your local banking center.
Your trial period will last at least 3 months. Making your Trial Period Plan payments on a timely basis is essential. This will show us that you can afford the modified payments — this is required to receive a permanent modification.
Now that you've got a new monthly payment amount, it's a good time to see how it fits in with your other financial obligations. You'll want to make sure that the payment amount is sustainable over the long run - and an updated budget is an effective way to do this.
A realistic budget lets you take a close look at exactly how much money you have coming in, and where it's going. You'll be able to see where you may be spending too much and identify specific areas where you may be able to cut back.
If you are unable to successfully complete the trial period to get a permanent modification of your mortgage, you may need to consider options that involve leaving your home.
If your home is currently worth less than the amount remaining on your loan, you may be able to sell your home in a short sale. We offer programs—such as the federal government's Home Affordable Foreclosure Alternatives program—that provide a streamlined approval process and financial incentives to help you with relocation. By working with us to successfully complete a short sale, you may qualify for financing for future credit sooner than if you do nothing and allow your home to go through a foreclosure. In addition, you may be eligible for relocation assistance of up to $3,000 for moving, rental, and relocation expenses.
I have made all three payments during my trial period
If you successfully make your Trial Period Plan payments during the trial period, you will be approved for a permanent modification of your loan. You must continue making your Trial Period Plan payments until you receive a letter and Modification Agreement from us — this may be longer than 3 months.
The Modification Agreement you receive from us defines the changes to your home loan. This agreement must be signed, notarized and returned to us before your modification becomes permanent.
We strongly encourage you to continue making your monthly mortgage payments at least in the amount of Trial Period Plan payments until you receive this agreement and your modification has been officially made permanent. Not staying current on your monthly mortgage payments could negatively impact your credit.
In addition, the amount of any missed payments will be added to your unpaid principal balance, which could increase the amount of your payments after the loan is permanently modified.
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.
