Can I Modify My Home Equity Mortgage With a Loan Modification?

Loan modifications to assist reduce mortgage and interest rates, have been the buzz for the past few years as far more and significantly more many people struggle with the sluggish economy and job losses across the country. Several questions still swamp around the loan modification process and in this article we will take a appear at equity loans, primarily the choices provided by Bank of America. Due to Bank of America's acquire of Countrywide Home Loans, it has been a challenge for the huge lender as numerous of the off colored mortgages and implications of mortgage fraud come to the surface.

With that getting stated the largest lender in the country is stepping up their efforts to attempt to preserve folks in their homes. So if you have a residence equity loan with Bank of America, it is valuable to know you do have alternatives. Let's review some of the eligibility requirements for this program:

-have had your property equity account open for at least 9 months -have not received dwelling equity account loan assistance when in the past 12 months or twice in the past 5 years -be experiencing a monetary hardship, such as job loss, divorce or medical emergency -have a willingness and capacity to repay the loan

If you are not eligible this does not mean you can not function something out and need to get in touch with your lender. So how do I get started? You will will need to collect some documents and the loan modification for second liens is similar to modifying your initial, so if you have already gone via a loan modification on your very first mortgage, you should certainly be a pro by now!

Gather imperative monetary information and facts like pay stubs, hardship letter, bank statements, and tax returns. You will will need your account facts so grab your most recent mortgage statement, you will want to have all your monthly expenses down on paper, this will incorporate rent, food, utilities, etc. Be positive when you have everything together you call the equity department of your loan servicer, for you can call a specialist (see web-site).

So what occurs when I speak to the specialist and they figure out I may well be eligible? Once you submit your info, you will want to remain in make contact with with the equity department, make certain you are calling them at least two to 3 times a month, and preserve a conversation log of all issues you discuss with the representative.

If you are approved you will have to enter into the three month trial period, once you have created these payments on time you should really receive your final loan modification documents. You could also be asked to send in updated documents like pay stubs or bank statements so maintain these handy until the approach is complete.

Remember the most essential thing is to start the method and secondly stay in contact with your lender!