If you are employed and having trouble in making your monthly mortgage payments then Bank of America Loan Modification HAMP might be able to provide you with financial support. HAMP is a loan modification program that helps you modify your current mortgage loan, helping to lower your monthly mortgage payments. If your mortgage is currently underwater, refinancing with the HARP Program may be a better option for you. Home Affordable Modification is one of the federal government’s Making Home Affordable programs. The main goal of Government for modifying your loan is to help you get a more affordable and feasible monthly mortgage payment.
Bank of America Loan Modification Eligibility for HAMP:
Everyone is not eligible for HAMP loan modification. You may be eligible to modify your home loan under the Home Affordable Modification Program (HAMP), 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 reduced income or medical expenses
- Your current mortgage was taken out before January 1, 2009
- You are employed.
- You have sufficient documented income to make the reduced monthly payment.
- You have a documented financial hardship. This can include the reduction in wages, medical bills, missed credit card payments or late mortgage payments.
- If you are requesting a loan modification for a rental home, you must be delinquent on the mortgage payment for that property.
- You must have a loan balance that is less than or equal to $729,750 if you are requesting a loan modification on your primary residence or one-unit rental property. That limitation increases for a multifamily residential investment property.
- The property is not incriminating.
- You have not been convicted of a serious crime involving a mortgage or real estate transaction during the past 10 years.
All of the HAMP loan modification applications go through a full underwriting process. If you do not qualify for the HAMP program according to certain requirements then you should consider a traditional mortgage refinance which could help you lower your interest rate and lower your monthly payments.
Criteria to Apply for HAMP Loan Modification: –
The application process is not difficult, but it does involve some paperwork. First, you will need to complete the following two steps:
- Fill out the Mortgage Assistance Form
- Sign the tax return request; IRS Form 4506T-EZ or IRS Form 4506-T)
- Next, you will have to show proof of your income. Use the following checklist to determine what documents you will need to collect.
- If you receive a salary or hourly wages then provide a copy of your last two pay stubs showing year-to-date earnings
- If you are self-employed then provide your most recent profit/loss statement
- If you are receiving additional income from a pension, social security or public assistance then provide the documents that show the amount and frequency of payments or submit bank statements that show the receipt of the payments
- If you need to prove additional income from child support then produce the court orders or the bank statements that show the receipt of the payments
When you qualify for a trial period plan, they will send you a trial period plan notice by explaining the terms and amount of your payments. It will be based on their estimate of what your monthly payments would be with a permanently modified loan.
The purpose of the Trial Period Plan is to show that you are prepared to make the modified monthly payments. The trial period lasts a minimum of three months. And the trial period plan begins by making your first payment. Payments can be made by mail or over the phone, at no additional charge. You should be aware that Trial Period Plan payments can’t be made at your local banking center. It is to be better that you make each trial period plan payment in a timely manner in the amount that is specified in the notice to receive a permanent modification.
If your original loan payment does not include a portion of your property taxes and homeowners insurance then those amounts will be added to your monthly payment and will be held in an escrow account.
Benefits of HAMP Loan Modification: –
HAMP addresses and deals borrowers in financial distress and it give you the opportunity to regain financial stability by restructuring your mortgage loan. If you qualify, some of the benefits include the following:
- Lower monthly mortgage payment
- Increased financial savings
- Foreclosure avoidance
- Fewer collection calls
- Restored credit worthiness
- Stress reduction
Types of HAMP Modifications: –
The HAMP program can do a number of things to make loans more affordable for qualified homeowners. If you qualify, available options include:
- Reducing the interest rate
- Reducing the principal if it exceeds the current market value of your home
- Extending the term of the loan