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.