Bank of America Loan Modification Tips

As one of the leading mortgage lenders in the country, Bank of America is also one of the first to support the government’s mortgage loan modification program. Homeowners who have trouble keeping up with their mortgage can now get their loans restructured to more comfortable terms, allowing them to stay in their homes and avoid foreclosure. If you’re considering a Bank of America mortgage loan modification, read on for some tips and tricks to help you get the best deal.

Make the call. The first step to any mortgage loan modification is to call the lender yourself. Bank of America handles loan modification applications through its Loss Mitigation department, so make sure you have the right person on the line. It may take a while since the bank receives thousands of requests a day, but waiting is part of the process—it just takes a bit of patience.

Hire a lawyer. One of the best ways to ease up the mortgage loan modification process is to work with a loan modification attorney. For one thing, he or she will already have links with local banks, so it’s easier to get to the right people. They can also help you decide what terms to demand, how to negotiate your case, and what alternatives to consider in case the mortgage loan modification doesn’t work out.

Gather your documents. A lot of paperwork goes into mortgage loan modification, and most of them have to do with your finances. Bank of America will want recent financial statements, pay stubs and other proof of income, tax forms, and your mortgage bills for at least the past two months. Make sure to have all these on hand before handing in your kit; otherwise your application could be significantly delayed or even rejected.

Write a hardship letter. The hardship letter is another important element in your mortgage loan modification. This is where you get to tell the story behind all the paperwork. Talk about how you lost your job or had to pay medical bills, and more importantly, explain how you plan to get back on track now that the hardship is over. Your loan modification attorney can help you draft the letter to meet the bank’s standards.

Stay in touch. It’s important to stay updated once your application is in. Not only does it ensure that things are moving; it also shows the bank that you’re motivated and willing to work your way out of financial trouble. Call up the bank around once a week to ask about your application, and make sure to keep a record of every correspondence you receive.

Mortgage Modification: Pitfalls to Watch Out for

Mortgage modification is among the biggest industries to have sprung up from the real estate crash. With government backing and widespread participation from lenders, it has become the solution of choice of many homeowners looking to save their homes. But just like any financial offer, mortgage modifications have their share of weak spots. And when it’s your home at stake, you’ll want to put a bit more effort into your choices and make sure you play it safe. Here are some of the most common weak spots of loan modification and how they can be avoided.

You can only try once. Borrowers who get denied a mortgage modification cannot file a second application. However, surprisingly few borrowers know this, and send off their application kits with missing documents or poorly drafted letters. For a major investment like real estate, the last thing you want is to take chances.  

Plan your first attempt carefully—work with experienced professionals and don’t hesitate to invest in good service. And once you get your mortgage modification, make sure to go over all the rules. Sometimes, an attractive offer may actually include hidden costs that don’t really help, and may even push you further into debt.

Lenders don’t have anything to gain. While the program offers incentives to lenders who facilitate loan modifications, sometimes it still makes more financial sense for them to foreclose or agree on a short sale. After all, if you’ve been behind on your payments, they don’t want to risk losing more by keeping you on board. That’s why the requirements are tight and the rules for staying on the program are stricter than in regular loans. A good mortgage modification attorney can help you negotiate more efficiently. Look for ways to convince your lender that modifying your loan makes more sense than foreclosing.

There’s a high rate of fraud.
Mortgage modification companies have turned up by the thousands as the housing crisis tightened its grip on homeowners. But with this fast spread comes a real risk: thousands of homeowners have been tricked into paying companies that don’t really do anything to help. While the government has put in steps to prevent mortgage modification fraud, the best thing to do is still to choose wisely. Upfront payments are the first sign of a loan modification fraud - if someone asks you to pay before doing anything to help you, turn your back immediately and look for another company.

5 Tips Every Loan Modification Firm Talks About

Author: Loan Modification Attorney

Here’s a list of loan modification do’s and don’ts to help you avoid common pitfalls.

Do know your rights.
More than 80% of mortgage contracts violate one or more lending laws—and most of them go unnoticed. But these violations can be your biggest weapon in the loan modification process. They can give you the leverage you need to negotiate with your lender and stop foreclosure. Your loan modification attorney can help you understand your rights and use them to get the results you want.

Don’t wait too long.


The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn’t mean it’s safe to procrastinate. The longer you wait, the harder it gets to get you out of that fix. As soon as you decide you need mortgage help, call for a loan modification help and get started.


Do work with your lawyer.
Your Home Loan Modification doesn’t rest in the hands of your lender, your broker, or your loan modification attorney. These people can help, but you have to do your part and cooperate with your lawyer. Make sure to submit your paperwork on time, answer questions honestly, and give them a clear picture of your financial situation.

Don’t file for bankruptcy, unless you really have to.
Many people think that filing for bankruptcy can help them stop foreclosure. But data from the American Bar Association shows that it doesn’t work that way. In fact, 96% of the people who file bankruptcy end up losing their homes anyway—so they’re left with a foreclosure AND a bankruptcy on their records. In some cases, bankruptcy is still a viable option, but don’t make any decisions without getting professional advice.


Do have a backup plan.
Not all people will qualify for a mortgage loan modification. Maybe you’ve fallen too far behind, your lender may be simply hard to work with, or maybe you don’t need it after all. In any case, it’s always good to have a Plan B. Your mortgage modification attorney can help you find the best solution.

If you can’t get your loan modified, talk to your lawyer about a short sale. This involves selling your home for less than its fair market value and giving the proceeds to your lender. Although you still lose your home, it’s not as damaging to your credit as foreclosure, so it’s easier to get back on your feet.

Article Source: http://www.articlesbase.com/mortgage-articles/5-tips-every-loan-modification-firm-talks-about-702150.html

About the Author:
The Loan Modification Firm has all the experience and knowledge that is needed to get the job done. The Loan Modification Attorney can be reached at Law Offices of Marc R. Tow Just Call 800-738-1170 or visit Home Loan Modification
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