Bank of America Offers Tips to Homeowners to Streamline the Modification Process
Calabasas, CA (PRWEB) December 4, 2009
In todays economic environment, many homeowners are struggling to keep up with their monthly mortgage payment. New and established homeownership retention and foreclosure prevention programs offered by mortgage servicers and the federal governments Making Home Affordable (MHA) can help ease some of the burden.
Within MHA, the Home Affordable Modification Program (HAMP) provides borrowers who have experienced a financial setback an opportunity to possibly achieve more affordable mortgage payments by ensuring the payments are no more than 31 percent of their monthly gross income. It begins with a trial period when borrowers are required to make adjusted monthly payments for three months. During the trial period, borrowers must submit specific documents to verify their income to qualify for a permanent modification of their loan terms. If the information and the trial period payments are not received by the servicer in a timely fashion, borrowers will be unable to continue in the program.
The first step struggling homeowners should take is to have their financial documents in order, said Ken Scheller, who manages the Home Retention Division for Bank of America Home Loans. Servicers will ask specific questions about income and hardship to help better understand the homeowners situation and determine the best options available.
Homeowners who have fallen behind on their mortgage payments or are at imminent risk of falling behind on their mortgage payments due to a financial hardship could be eligible for HAMP. Guidelines to the program were created by the government and apply to homeowners who meet the following qualifications:
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