Last nights local Las Vegas newscast showed the frustration of consumers trying to get help from Bank of America with their mortgage payments. I am looking forward to the follow up report tonight, but here's some information from Bank of America on the options they are offering distressed homeowners.
Maintaining homeownership in difficult times can be stressful, but there are options for homeowners facing financial hardship. Even the best financial plan can be upset by unexpected events such as illness or job loss. if for any reason you are finding it difficult make your home loan payments, Bank of America suggests you call them immediately.
They may have options that could help you remain in your home, minimize damage to your credit history, or avoid legal issues. In some cases, it may even be possible to reduce or settle your debt.
So far I have not received a loan modification offer from the bank or any other solutions, but here is what options I am expecting to hear:
Repayment Plans
A temporary payment plan that could suspend or reduce payments until you are able to bring your payments up to date.
Loan modifications
If a loan modification is approved, the loan terms may be permanently changed to make the payment more affordable. The approaches include changing or reducing the interest rate, extending the time available to repay, or reamortizing the loan balance. In some cases they may add past due payments to the existing loan balance to bring the loan current.
Debt Management Counseling
To get help with creating a budget or in dealing with creditors, you can find an accredited counseling agency through the National Foundation for Credit Counseling (www.nfcc.org or 1.800.388.2227) or the Association of Independent Consumer Credit Counseling Agencies (www.aicca.org or 1.866.703.8787).
Special Programs
Other options may include programs for active duty military personnel or for homeowners who are able to make a lump sum payments to lower their principal amount.
When you just can't make your payments
If you are having difficulty bringing your mortgage up to date, foreclosure is not the only option. Other options may include:
Short payoff or settlement. If you owe more than your home is worth and meet certain requirements, the bank may agree to accept a payoff that is less than the amount that is owed.
Deed in lieu of foreclosure. If your property is free from other liens or encumbrances, you may be eligible to deed your property directly to the bank and avoid the foreclosure sale.
Beware of "foreclosure rescue" scams.
Many predators try to take advantage of homeowners in difficulty, and offer "solutions" that just make things worse. To protect yourself and your home, review any offers with a financial advisor you trust and never sign anything unless you clearly understand all the details.
Many people are disgusted with Bank of America, but it looks like they are offering several acceptable options. If you need help give them the benefit of the doubt and contact them.
If you originally got your loan from Bank of America, call 1.800.285.6000
If you originally got your loan from Countrywide Financial, call 1-800-669-6607.
Before you call, be sure to have your account number, income and expense information handy or visit bankofamerica.com/homeloans and select the Services and Support tab for more information about options that may be available to you.
Have you tried to get a loan modification from Bank of America and were denied? Were you offered any of these other options? Let us hear from you.
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