Is home equity assistance right for me?
Program goal
The goal of a home equity loan modification is to help you achieve long-term affordability on your home equity loan or home equity line of credit (HELOC) payments. This may be accomplished by modifications to the rate, length and/or monthly payments of your loan.
Whether you qualify for a home equity loan or home equity line of credit (HELOC) modification program depends upon your current financial situation. For more information, please contact us to discuss which options may be available to you.
Eligibility
In order to be considered for a modification of your home equity loan or home equity line of credit, you must:
have had your home equity account open for at least 9 months
have not received home equity account loan assistance once in the past 12 months or twice in the past 5 years
be experiencing a financial hardship, such as job loss, divorce or medical emergency
have a willingness and ability to repay the loan
Other forms of home equity assistance may be available. These could include:
- repayment plans of up to 12 months to help you catch up on past due payments
- payment extensions from 1-3 months
If you would like further details, please contact us.
Program at a glance
Step 1: If you meet the minimum eligibility requirements, call us to request home equity assistance. We will review your situation, determine if you meet all the requirements of this program, and ask you to supply us with a set of specific financial documents.
Step 2: You'll be asked to submit financial documents for everyone listed on the existing loan. It's important that you get these to us as soon as possible. We can't determine your eligibility without all of your required documentation.
Step 3: Part of the modification includes establishing a new payment amount. You will be required to complete a trial period of at least three months at an amount close to this new amount.
Step 4: Once you have met all requirements for a home equity or home equity line of credit (HELOC) modification, you will receive a Modification Agreement defining the changes to your home equity loan or home equity line of credit (HELOC). After you sign and return this document, we will finalize your modification.
Get more details on the steps of the home equity assistance process.
How do I get started with home equity assistance?
Applying for home equity assistance begins with a phone call. Having some important information ready before you call will help us determine if you qualify for home equity assistance.
Collect your financial information
Before you call us, please gather the following information for everyone listed on your home equity loan or home equity line of credit:
your home equity loan or line of credit number
monthly income (both the gross income before tax, and net or take-home pay)
all household expenses (food, utilities, Internet, etc.)
account balances on all other debts (student loans, car loans, etc.)
an explanation of your hardship (job loss, illness, etc.)
After you call, we will pair you with a Customer Relationship Manager who will work with you throughout the loan assistance process.
Contact us to discuss your financial situation
Call us today at:
1.800.669.6650
10am-10pm ET Mon-Fri
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.
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 home equity loan or home equity line of credit, we can help you understand what you need to do next.
I have called to request home equity assistance
We’ll begin to confirm the financial information you gave us over the phone by verifying it with data from the credit bureaus. You’ll be asked to collect a set of documents for everyone listed on the loan. These documents include:
a signed copy of the most recently filed federal tax return
copies of the most recent consecutive pay stubs covering two months
if anyone listed on the loan is receiving unemployment benefits, any combination of bank statements, direct deposits or cancelled checks to support receipt of unemployment income for the past two months
if anyone listed on the loan is self-employed, a copy of the most recent quarterly or year-to-date profit/loss statement
copies of account statements on all other debts (student loans, car loans, etc.)
To avoid any unnecessary delays, it’s important that you mail or fax these documents to us within ten calendar days of speaking with us.
I have submitted my documents
After receiving all of your documents, we can determine if you qualify for home equity assistance.
All customers qualified for assistance are required to complete a Trial Period Plan of at least 3 months. Once you have qualified for assistance, you’ll receive a letter outlining the trial payment amount and payment due dates.
This trial period payment is an estimate of what the initial monthly payment amount will be if you complete the trial period and enter into a permanent modification agreement. The specific details of the modification will be provided when you complete all Trial Period Plan payments on time and you receive the permanent Modification Agreement.
I am currently in a Trial Period Plan
When you enter into a trial period, it’s important that you make all of your trial period payments for your home equity loan or home equity line of credit on time. Missing a payment during the trial period could disqualify you for a modification.
If you successfully make your Trial Period Plan modification payments, you’ll receive a Modification Agreement defining the changes to your home equity loan or home equity line of credit that must be signed and returned to us before your modification is made permanent.
If you cannot completely make all of your Trial Period payments, please contact your Customer Relationship Manager right away to discuss options that may be available to you.
I have received a Modification Agreement
If you successfully make your Trial Period Plan payments, you’ll receive a Modification Agreement defining the changes to your home equity loan or home equity line of credit. It is important that you continue making your trial payments until you receive official notification from us. Once you sign and return the Modification Agreement, we will finalize your modification.
Please note: we cannot move forward with any modification until you sign and return all the documentation we’ve asked for.
Home Loan Assistance Frequently Asked Questions
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 will 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.
If you have a Bank of America home equity line of credit or home equity loan, please contact us to discuss a short sale. If this is the right option for you, we will provide you with additional information and documents to initiate a short sale. In a short sale, the property is listed for sale at fair market value, even if that value is lower than what you owe on the mortgage. If a buyer is identified and the property is sold, the proceeds from the sale are applied towards the mortgage debt, even if the proceeds are less than the amount owed on the mortgage. In some cases, you may be responsible for any balance remaining after the sale.
