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Home Affordable Modification Program Military Modification

Military Modification for servicemen and women. This program was designed specifically to help qualified military customers who are finding it difficult to make their mortgage payments, using principal forgiveness and potentially reduced rates and other solutions.

Is a Military Modification right for me?

Program Goal

The Military Modification was created to help members of our military obtain more affordable and sustainable mortgage payments by principal forgiveness, potentially reduced rates and other solutions.

Eligibility

You may be eligible for a Military Modification if:

You or a co-borrower is on active duty, or it's been less than nine months since your release

The property is your primary residence, or you've 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

You took out your mortgage before January 1, 2009

Your total monthly payment (principal, interest, taxes, insurance and association dues, if applicable) is more than 31% of your pre-tax monthly income

Your loan is owned and serviced by Bank of America, and hasn't 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’t 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 that provide a streamlined approval process and financial assistance to help you with relocation.

How do I get started with a Military Modification?

Call our dedicated Enterprise Military Business Unit.
1.877.345.0693

Assistance is available 24 hours a day, 7 days a week.

Now that I'm in the process, what's next?

I've called to request a Military Modification.

During the call, we'll confirm that you're eligible to apply for this program, and tell you about some important deadlines.

After the call, we'll send you a financial information packet. You'll need to complete the forms in the packet and gather any additional documents that are requested.

Dedicated representatives with our military assistance unit will help you explore any other modification options that may be available to you.

If we can’t 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 that provide a streamlined approval process and financial assistance to help you with relocation.

I've received my financial information packet.

As soon as possible, have all borrowers on the loan complete and sign:

Your Request for Mortgage Assistance form

IRS Form 4506-T Request for Transcript of Tax Return (only one form is required if you file your taxes jointly)

Send us both forms and:

Your active duty orders, or orders dated within the past nine months releasing you from active duty

Any additional documents that are requested

Within five business days after we first receive your documents, we'll contact you to let you know if any documents are incomplete or missing.

Within 30 calendar days of receiving your complete set of application documents, we'll confirm if you qualify for a Military Modification and notify you of our decision.

I've been approved for a Trial Period Plan.

If you qualify, we'll send you a Trial Period Plan Notice explaining the terms and amount of your payments. It will be based on our estimate of what your monthly payments would be with a permanently modified loan.

The purpose of the trial period is to show that you can afford to make the modified monthly payments. It lasts a minimum of three months.

Your trial period begins when you make your first payment. Payments can be made by mail or over the phone, at no additional charge. Trial period payments cannot be made at your local banking center.

You must make each trial period payment in a timely manner, in the amount specified in the notice, in order to receive a permanent modification.

If you don't successfully complete the trial period, we'll automatically review other options.
If there isn't a home retention program that works for your situation, we'll explore other options to help you avoid foreclosure. If you're protected under the Servicemembers Civil Relief Act, we'll continue to halt any foreclosure proceeding as required under the Act.

I've made all three payments during my trial period.

If you successfully complete your trial period, you may be approved for a permanent loan modification.

After you're approved, you'll receive a letter and Modification Agreement defining the changes to your home loan.  In some cases, it can take three or more months before you receive the letter and agreement. Meanwhile, you must continue making your trial period payments.

Important to-do's:

  • Sign the Modification Agreement
  • Get it notarized
  • Return it to us as soon as possible

Your modification only becomes permanent after we receive the signed and notarized agreement.

Home Loan Assistance Frequently Asked Questions

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

  • Principal Forgiveness: Your outstanding principal balance may be reduced to no more than the property's current market value
  • Interest Rate Reduction: Your rate may be reduced either permanently or temporarily
  • Term Extension: The final due date of the loan may be extended and your loan payments may be recalculated over a longer period of time
  • Forbearance: We may be able to postpone your home loan payments for a set amount of time if you're suffering from a temporary financial hardship. 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.

You'll receive a letter explaining the reason your loan didn't qualify. We'll also automatically review your information for other foreclosure prevention options. If any additional information is needed to review your eligibility, you'll get 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.

If you're not protected under the Act:

We won't start or advance foreclosure proceedings while your loan is under review for a modification. The evaluation process begins when we receive all documents we've requested from you. No foreclosure sale will be conducted and you won't lose your home during the evaluation.

We don't charge fees for a modification. However, third party fees such as attorney fees and recording fees may apply and you'll 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're behind on your payments when you start your trial period, your loan will be reported as “delinquent” until it has been permanently modified, even if you're making your trial period 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, homeowner counseling is only required for borrowers whose total monthly debts are very high in relation to their incomes. It's voluntary for other applicants.

When you apply for a modification program, we'll evaluate your monthly debts, including:

  • The amount you'll owe on the new mortgage payment after it is modified
  • 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.