Is a Military Modification right for me?
Program Goal
Part of the federal government’s Making Home Affordable program, the Military Modification was created to help members of our military obtain more affordable and sustainable mortgage payments. This is achieved by forgiving a portion of your mortgage principal, as well as potentially reduced rates and other solutions.
Eligibility
You may be eligible for a Military Modification if:
you are on active duty, or it has been less than 9 months since you were released from active duty
you are finding it difficult to make your mortgage payments
you occupy the home as your primary residence, or have been temporarily displaced—for example, due to a foreign service assignment
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
your current mortgage was taken out on or 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
your loan is owned and serviced by Bank of America
your mortgage has not been previously modified under the Home Affordable Modification Program
Dedicated representatives with our military assistance unit will help you explore any other modification options that may be available to you.
If we can not 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
Step 1: If you meet the minimum eligibility requirements, call us to request a Military Modification. We will review your situation, confirm that you meet the requirements for this program and then send you a financial information packet including a list of required documents.
Step 2: Upon receipt of the financial information packet, please complete the forms and provide us with copies of the required documents. Sign and return the information to us as soon as possible. Please note that we must receive all of the documentation to evaluate your loan for a trial modification.
Step 3: If you qualify for the program, you will enter a trial period of at least 3 months. Making timely and full modified mortgage payments during this trial period demonstrates that the payments fit within your budget and increases the chances of your modification becoming permanent. This is essential to receiving a permanent Modification Agreement.
Step 4: If you successfully make all of your Trial Period Plan payments, you may receive a Modification Agreement defining the changes. After this document has been signed, notarized and returned to us, your modification will be made permanent and any principal that is eligible for forgiveness will be forgiven.
Get more details on a Military Modification.
How do I get started with a Military Modification?
Call us to request a Military Modification
When you call us to request a Military Modification, we will review your situation, confirm that you meet the requirements for this program and then send you a financial information packet.
Call our dedicated military assistance unit at:
1.877.430.5434
Assistance is available 24 hours a day, 7 days a week.
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, gather the documents listed for you and submit your active duty orders—or orders dated within the past 9 months releasing you from active duty.
The following forms must be completed and signed by all borrowers on the loan.
Request for Mortgage Assistance form
IRS Form 4506-T Request for Transcript of Tax Return
(only one required if you file your tax returns jointly)
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 am in the process, what is next?
I have called and requested a Military 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 any additional information you will need to return.
Dedicated representatives with our military assistance unit will help you explore any other modification options that may be available to you.
If we can not 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 relocation assistance of $3,000-30,0002 for moving, rental, and relocation expenses.
I have requested a Military Modification.
After receiving the financial information packet, you will need to complete the enclosed forms, gather the documents listed for you and submit your active duty orders—or orders dated within the past 9 months releasing you from active duty.
The following forms must be completed and signed by all borrowers on the loan.
Request for Mortgage Assistance form
IRS Form 4506-T Request for Transcript of Tax Return
(only one required if you file your tax returns jointly)
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 to 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. Within 30 business days of receiving your documents, we will confirm if you qualify for a Military Modification.
Dedicated representatives with our military assistance unit will help you explore any other modification options that may be available to you.
If we can not 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 relocation assistance of $3,000-30,0002 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 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.
If you are unable to successfully complete the trial period to get a permanent modification of your mortgage, you will automatically be reviewed for other home retention options. If no other options are available to bring your mortgage payments to an affordable level, we can explore options to help you avoid foreclosure, but you may need to consider options that involve leaving your house. If, however, you are protected under the Servicemembers Civil Relief Act, we will continue to halt foreclosure proceedings as required under the Act.
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 relocation assistance of $3,000-30,0002 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 may be approved for a permanent modification of your loan. You must continue making your Trial Period Plan payments until you receive a confirmation letter and your modification is made permanent. 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 in order to make your modification permanent.
Continue making your monthly mortgage payments in the amount of Trial Period Plan payments until you receive this agreement and your modification has been officially made permanent. Becoming past due 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
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 is 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.
Customers who are past due 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.
