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

Loan modifications to aid lower mortgage and interest rates, have been the buzz for the past couple of years as even more and a lot more persons struggle with the sluggish economy and job losses across the country. A number of questions still swamp about the loan modification method and in this article we will take a look at equity loans, primarily the possibilities supplied by Bank of America. Due to Bank of America's purchase of Countrywide House Loans, it has been a challenge for the big lender as various 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 try to keep men and women in their homes. So if you have a home equity loan with Bank of America, it is very important to know you do have possibilities. Let's review some of the eligibility needs for this program:

-have had your household equity account open for at least 9 months -have not received home equity account loan assistance once 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 cannot function some thing out and must contact your lender. So how do I get started? You will need to collect some documents and the loan modification for second liens is similar to modifying your initially, so if you have already gone via a loan modification on your initially mortgage, you must be a pro by now!

Gather imperative financial info like pay stubs, hardship letter, bank statements, and tax returns. You will have to have your account specifics so grab your most current mortgage statement, you will want to have all your monthly expenses down on paper, this will include rent, food, utilities, etc. Be sure when you have almost everything together you call the equity department of your loan servicer, for you can call a specialist (see website).

So what takes place when I speak to the specialist and they determine I may possibly be eligible? When you submit your data, you will want to remain in contact with the equity department, make confident you are calling them at least two to 3 times a month, and keep 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 made these payments on time you ought to get your final loan modification documents. You might possibly also be asked to send in updated documents like pay stubs or bank statements so keep these handy until the process is total.

Keep in mind the most imperative thing is to begin the method and secondly remain in make contact with with your lender!