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 help you get a more affordable and sustainable monthly mortgage payment.
Eligibility
You may be eligible to modify your home loan under the Home Affordable Modification Program, if:
the amount you owe on your first mortgage is equal to or less than:
- $729,750 for a single-family home
- $934,200 for a 2-unit property
- $1,129,250 for a 3-unit property
- $1,403,400 for a 4-unit property
you are experiencing a financial hardship, such as a job loss, divorce or medical illness
your current mortgage was taken out before January 1, 2009
Is your loan an FHA loan? If so, try modifying your loan under the federal government’s FHA Home Affordable Modification Program.
If you are not eligible for a Home Affordable Modification, other modification options may be available.
If we cannot find a modification option that works with your budget, you may need to consider options that involve leaving your house. If your house is currently worth less than the amount remaining on your loan, you may be able to sell your house 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 house to go through a foreclosure. In addition, you may be eligible for financial assistance of $3,000-30,000en_disclamer_3to3K for moving, rental, and relocation expenses.
Program at a glance
If you meet the minimum eligibility requirements, call us to request a Home Affordable Modification. We will review your situation over the phone, confirm that you meet the requirements for this program and then send you a financial information packet.
Once you have received your packet, you will need to fill out the forms and collect your documents. Sign where necessary and return the information to us as soon as possible. We cannot evaluate you for a trial modification without all of your required documentation.
If you qualify for the program, you will 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.
If you successfully make all of your Trial Period Plan payments, you will receive a Modification Agreement explaining the changes to your loan terms. After this document has been signed, notarized and returned to us, your modification will become 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.
Footnote 1 The relocation assistance payment is calculated based on the appraised value of the homeowner's property. The total amount will be no less than $3,000, but no more than $30,000. If the property is the principal residence of a tenant or other occupant, the occupant may be eligible to receive $3,000 of the relocation assistance. If you are eligible for an amount above the $3,000 HAFA relocation assistance, the additional amount will be paid you. The payment will be delivered at the time of closing if the homeowner complies with all terms and conditions of the Short Sale Agreement, which include but are not limited to the following: a full walk-through appraisal must be completed and you must satisfy all junior liens and provide clear title for the property (the relocation assistance payment can be used to clear those liens). If you are still responsible for a deficiency balance after the sale, you should be aware that this relocation assistance will increase that deficiency since it reduces the amount available to apply towards your mortgage debt. If the homeowner does not comply with all terms and conditions of the Short Sale Agreement, you will not receive the relocation assistance payment. The amount of any relocation assistance will be reported to the Internal Revenue Service (IRS) on the appropriate 1099 Form or Forms. We suggest that the homeowner contact the IRS or your tax preparer to determine if you have any tax liability. In order to receive the relocation assistance, the property must close by September 26, 2013.
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 will review your situation over the phone, confirm that you meet the requirements for this program and then send you a financial information packet.
After you call, we will pair you with a Customer Relationship Manager who will work with you throughout the loan assistance process.
Call us today at:
1.800.846.2222
8am-12am ET Mon-Fri
8am-8pm ET Sat
3pm-12am ET 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 financial information packet, you will need to complete the enclosed forms and provide all the documents listed for you. Be sure to sign and return your completed forms and documents to us as soon as possible.
You can expect to hear back from your Customer Relationship Manager within 10 business days from when we receive all your required documents. The purpose of contacting you is to tell you we received your information, as well as let you know how the evaluation process works and how long it takes. If documents are missing, your Customer Relationship Manager will contact you to tell you which information you need to send us.
Now that I am in the process, what is next?
If you are 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 will send you a financial information packet with forms to complete and specifying what additional information you will need to submit.
I have requested a Home Affordable Modification.
When you receive the financial information packet, you will need to complete the enclosed forms and provide all the documents listed for you. Be sure to sign and return your completed forms and documents to us as soon as possible.
You can expect to hear back from your Customer Relationship Manager within 10 business days from when we receive all your required documents. The purpose of contacting you is to tell you we received your information, as well as let you know how the evaluation process works and how long it takes. If documents are missing, your Customer Relationship Manager will contact you to tell you what information you need to send us.
If you do not qualify for a Home Affordable Modification, other modification options may be available.
If we cannot find a modification option that works with your budget, you may need to consider options that involve leaving your house. If your house is currently worth less than the amount remaining on your loan, you may be able to sell your house 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 house to go through a foreclosure. In addition, you may be eligible for financial assistance of $3,000-30,000en_disclamer_3to3K for moving, rental, and relocation expenses.
I have been approved for a Trial Period Plan.
If you qualify, you will receive a Trial Period Plan Notice outlining the terms and the amount of your Trial Period Plan mortgage payments. This is our estimate of what your payments would 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 payments on a timely basis is essential because it shows us you can afford the modified payments, and it is required for a permanent loan modification.
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 house.
If your house is currently worth less than the amount remaining on your loan, you may be able to sell your house 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 house to go through a foreclosure. In addition, you may be eligible for financial assistance of $3,000-30,000en_disclamer_3to3K 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, complete housing counseling if required and return any additional required documentation, 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 made permanent.
Please note that during the trial period, your monthly payment will be less than your original loan payment. If your loan payment does not currently include a portion of your property taxes and homeowners insurance, this will be added to your monthly payment. This is done through an escrow account specifically set up to collect the funds for your taxes and insurance. In addition, once your loan is permanently modified, your new monthly payments could be higher than your Trial Period Plan payments.
Footnote 1 The relocation assistance payment is calculated based on the appraised value of the homeowner's property. The total amount will be no less than $3,000, but no more than $30,000. If the property is the principal residence of a tenant or other occupant, the occupant may be eligible to receive $3,000 of the relocation assistance. If you are eligible for an amount above the $3,000 HAFA relocation assistance, the additional amount will be paid you. The payment will be delivered at the time of closing if the homeowner complies with all terms and conditions of the Short Sale Agreement, which include but are not limited to the following: a full walk-through appraisal must be completed and you must satisfy all junior liens and provide clear title for the property (the relocation assistance payment can be used to clear those liens). If you are still responsible for a deficiency balance after the sale, you should be aware that this relocation assistance will increase that deficiency since it reduces the amount available to apply towards your mortgage debt. If the homeowner does not comply with all terms and conditions of the Short Sale Agreement, you will not receive the relocation assistance payment. The amount of any relocation assistance will be reported to the Internal Revenue Service (IRS) on the appropriate 1099 Form or Forms. We suggest that the homeowner contact the IRS or your tax preparer to determine if you have any tax liability. In order to receive the relocation assistance, the property must close by September 26, 2013.
Home Loan Assistance Frequently Asked Questions
You may be eligible for the federal government’s Home Affordable Modification Program if:
- your loan is not currently owned by Fannie Mae or Freddie Mac or insured by FHA
- the amount you owe on your first mortgage is equal to or less than:
- $729,750 for a single-family home
- $934,200 for a 2-unit property
- $1,129,250 for a 3-unit property
- $1,403,400 for a 4-unit property
- you are experiencing a financial hardship, such as a job loss, divorce or medical illness
- your current mortgage was taken out before January 1, 2009
This program is managed through your lender; you will call them for an application. If Bank of America is your lender, call us. We will review your situation, confirm that you meet the requirements for this program and then send you a financial information packet.
If your loan is an FHA loan, you need to apply under the FHA Home Affordable Modification Program – which was developed specifically for homeowners with FHA loans.
No. If you are struggling now, or believe it will soon be difficult for you to make your mortgage payments on time (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 for a number of reasons. It may be caused by an increase in your mortgage payment, a reduction in your household income or some other hardship that makes it difficult to pay your mortgage. If you are experiencing any of these situations, you will need to document your income and expenses and provide evidence of your financial hardship.
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 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.
If you are in foreclosure proceedings, or your home has been scheduled for a foreclosure sale, contact us so we can discuss your available options. We want to help you keep your home.
You may also want to take advantage of HUD-approved housing counseling services.
If you were denied home loan assistance, such as a request for a loan modification, short sale or deed in lieu you may be able to dispute the decision. You can file an escalated case with us if you have reason to believe any of the following are true:
- you met all the criteria for home loan assistance but were not properly evaluated for assistance or were improperly denied assistance. This may include:
- you did not receive adequate notice from us about your foreclosure alternatives
- you were not given appropriate time to respond to communications from us during your loan review process
- your loan was referred to foreclosure prematurely, or we did not suspend foreclosure activities when we were required to do so
You can also file an escalated case if either of these two specific concerns apply to your loan:
- you have a reasonable belief that your mortgage loan is being serviced in a fraudulent manner
- you have retained a lawyer to help you resolve a mortgage dispute with Bank of America
If you have reason to believe that any of the above apply in connection with your loan review and affected your eligibility for home loan assistance, you may file an escalated case with us to review your concerns.
Please note that inquiries about a pending request for home loan assistance or general questions about the servicing of your mortgage do not meet the requirements for an escalated case. For general servicing questions, please call 1.800.669.6607 (Monday-Friday, 7am-7pm local time).
To file an escalated case, you or any third party representing you, such as a housing counselor or attorney, should send us a brief letter describing the specific reasons you believe one of the above scenarios applies to your loan or to your application for home loan assistance. If you are represented by an attorney, please have your lawyer submit this request on your behalf.
Escalated case requests must be sent by mail to the following address:
- Bank of America Corporate Center
Attn: BAC Escalated Case Unit
P.O. Box 940508
Simi Valley, CA 93094-0508
Please note that if a third party, such as an advisor or a nonprofit advocate, contacts us to submit an escalated case on your behalf, we must have your written authorization before we can communicate with them about you or your loan. Without your written authorization, we will not be able to discuss your home loan with them. We can provide you with an authorization form upon request.
What to expect after submitting your request
Within three business days after receipt:
- If your submission meets the requirements for an escalated case, within three business days of the receipt of your request, we will send you a written acknowledgement that we have received your request. This acknowledgement will also include the estimated date by which your escalated case should be resolved, along with a toll-free number for the Escalated Case Unit.
Within 15 calendar days after receipt:
- In most cases, within 15 calendar days of receiving your request, we will mail you a written response describing the proposed resolution of your request and any next steps to be followed by you or by us. If your matter cannot be resolved within 15 calendar days, we will notify you of the delay and give you a new estimated resolution date. This new estimated resolution date, in most cases, will be no longer than 30 calendar days from the date we received your original escalated case.
Checking the status of your escalated case
Your written confirmation will include a toll-free number you can call for information about your escalated case.
