Friday, August 20, 2010
Making Home Affordable - Bank of America Version
I recently got off the phone with a BOA representative. I thought I would inform readers of the home modification process for the Making Home Affordable Plan.
What is the Making Home Affordable Plan?:
Government mandated program instituted by most of the larger banks to lower payments to 33% of the borrowers monthly income.
How do they get to 33% of income?
1) First, they lower the interest to as low as 2%. If that does not get the payment to the 33% threshold, they will possibly extend term(s) of the loan, or have a principal forbearance.
Requirements to qualify (according to the Bank of America Rep):
1) Loan Origination on or before Jan. 1, 2009
2) Home is Owner occupied
3) Hardship Affidavit: (ie. loss of income, new birth)
4) Note: a dis-qualification would arise if the borrow has enough cash that would allow him/ her to pay 3 months of mortgage/ tax / insurance on the home.
IRS 4506-P Form - used to verify tax information
Sign Freddie Mac 1126, or Fannie Mae 1020 Form
2 most recent pay stubs for wage stubs
Self Employed Borrowers - 3 months of bank statements
Most recent signed tax return
Must provide tax and insurance information on the house
Must provide HOA documentation (if applicable)
Partial Payments for the trial modification for 3 months.
Bank of America Default Prevention Department: (877) 77-5842
Weitz: If you have read my past posts, you know that I am not a big believer in these modifications as 1) many borrowers don't qualify, or 2) many that do qualify are simply 'kicking the can down the road'.
For more information on foreclosure rights, or short sale rights in Washington, consider talking to an experienced Bellevue Foreclosure Attorney.
Weitz Law Firm, PLLC
5400 Carillon Point, Bldg 5000
Kirkland, WA 98033
at 11:48 AM