Tag Archives: hardship
Bank of America Loan Modification – Five Steps to Approval
Does paying your high monthly mortgage payment cause you stress or make you worry? Have you been thinking that you could get a better deal, like a Bank of America loan modification period? The Bank of America is known nationwide as a lending bank that is currently offering renegotiations for some of its borrowers. There are things you can make it easier for the Bank of America to approve your application. If you meet certain requirements, you can have your mortgage payments reduced. Before beginning these negotiations, follow these five steps.
1. Read and learn what the Bank of America requires in order to approve a loan modification. In order to be approved, you need to have a certain amount of disposable income and a specific debt to income ratio.
2. Get the paperwork in order. The bank officer will want to review all your documents in order to determine your qualifications. Make sure you have all the required documents before applying, as this will allow everything to proceed without delay. Improper or incorrect paperwork could also result in rejection of your application.
3. You must have a Hardship Letter. This letter must be convincing, compelling and clearly outline that you have or will suffer serious hardship if you have to continue paying your current monthly payments. There are three important parts to a Hardship Letter so make sure you find out what they are.
4. Be prepared, be accurate and complete the Bank of America loan modification application properly. Everything you write will be or could be checked. Include all important information, honestly, to make sure there is no reason for anyone to reject your application.
5. Be persistent and patient. It is not unusual for it to take eight weeks before the Bank of America will approve a loan modification application. If you are rejected, don’t take no for an answer. Through diligence, determination and focused persistence some homeowners have been able to have their rejection changed to an approval. This is your home you are fighting for, and success in this process will result in you keeping it.
If you follow this process are diligent, honest and thorough in completing your application; and you are persistent you might yourself approved for a Bank of America loan modification. Take the time that is needed. Put your energy into completing the application properly. Know what the bank requires in order to give an approval. If you don’t know something, ask, so you can complete the application properly. Seek and accept help and you might be able to keep your home. Just like so many other homeowners have been able to do, you can find a way to keep your home too!
Wells Fargo Loan Modification Completely Explained
Where traditional loan modification schemes can take months the newly implemented loan modification scheme at Wells Fargo can sanction your loan modification within a week if you are eligible. If you are seeker of Wells Fargo loan modification scheme you might want to know the details of this scheme. The details of Wells Fargo loan modification are explained here:
Project lifeline: This wells Fargo loan modification program stalls the foreclosure process up to 30 days to allow a timeframe for solution of loan workout to be implemented. Under this program Wells Fargo is proactively contacting borrowers who are delinquent for a period of 90 days or more, on a case by case basis to assess their situation and qualification for home loan modification. The documents required by the banks for assessment are homeowners credit history, income, debt to income ratio, present and past employment, current property valuation and initial valuation and proof of financial hardship. However there are some caveats applied to the conditions of qualification for the home loan modification. You do not qualify if you have: 1. loan on investment properties 2. loan on vacant properties 3. Bankruptcy already filed 4. Foreclosure already on with the date of sale within 30 days.
Fast track Solution for adjustable rate mortgage: Homeowner who took a loan and its payment is now beyond their affordability may qualify for a 5 year deferment on the introductory rate. To be eligible following criteria should be met: 1. The loans should have been taken between January1, 2005 and July 31,2007. 2. The loan should have been due for an interest rate reset between January1, 2008 and July 31, 2010. 3. Should have an initial fixed rate period of 36 months or less.
If homeowners meet the eligibility criterion under any of the above stated programs, they will be notified by Wells Fargo. Also to qualify you must be earning enough to pay for your expenses over and above the mortgage payment. However as a borrower you can also be proactive and contact Wells Fargo and see if you qualify. As a borrower seeking loan modification help, you would be required to do following:
Understanding of the application process: As a homeowner you would be required to correctly and honestly fill out the application forms and submit it to the bank. The application form generally requires proof of your financial hardship, expenses, and income statements.
Your form is the plea of your need to the bank, just thinking of it as a paperwork to be done away would be a big mistake. Make all your earnest effort to reflect your need genuinely in that form. Along with the form you have to send a financial hardship letter stating the reason you are seeking the home loan modification for. Try making it as compelling as possible without exaggerating or understating your need.
Gather information: You might want educate yourself on how to calculate you debt to income ratio, how to calculate your expenditure. This knowledge comes handy for filling up accurate data in the bank forms. You can also hire a specialized mortgage modification company to help you with forms.