A foreclosure can be avoided, but you need to take an important decision first. Do you want to keep your home? If you are willing to continue staying in your home, then you should not think about a home selling option, such as a short sale or deed in lieu. Sometimes, you don’t have a choice and a selling option is the only one you have to avoid a foreclosure.
Bank of America has a number of options for troubled homeowners under its home retention program. A foreclosure is never the best thing for a lender as it involves a long and expensive process. The bank also doesn’t want to keep a property in lieu of a mortgage debt as a real estate buy or sale is not what a bank is supposed to do. The bank will only be happy to help a borrower pay mortgages and retain homeownership.
How Bank of America can help me stay in my home?
One of the leading financial institutions in the nation, Bank of America has put in place an array of home retention options for borrowers who are facing difficulties in making payments. Here is a list of such options grouped under appropriate categories. Note that some of these may be exclusive for special groups of homeowners.
Bank of America Programs
- Forbearance Plan
- Home Loan Modification
Federal Government’s Programs
- Making Home Affordable
- Hardest Hit Fund
The following are some of the programs running at present under the Federal Government’s Making Home Affordable (MHA) program.
- Home Affordable Refinance Program (HARP)
- Home Affordable Unemployment Program
- Home Affordable Modification Program (HAMP)
- FHA Home Affordable Modification Program
- Home Affordable Modification Program Military Modification
How should I decide which mortgage assistance program is suitable for me?
You should consult a qualified housing counselor or call Bank of America at 1.800.846.2222 to discuss about the options that might be available to you. Depending upon your financial situation and subject to your qualifications, you might be eligible for any of the home loan assistance programs mentioned above. You can take the following as a guide to decide upon the correct home retention option at Bank of America.
- If you are facing temporary hardship, then you can consider a forbearance plan of the bank. The bank will allow you to miss a few payments, which you can repay at a later time.
- If you have lost your job or are currently unemployed, you can take advantage of the government’s Home Affordable Unemployment Program. Your payments will be suspended for a few months in this case.
- If you think you can qualify for a lower interest rate, you can try a refinancing program of the bank. If your loan is owned by Fannie Mae or Freddie Mac, then you may qualify for the Home Affordable Refinance Program (HARP) of the federal government.
- If your monthly payment is too high to afford, you can consider a loan modification program of the bank. Depending upon your eligibility, you may also qualify for Home Affordable Modification Program (HAMP), FHA Home Affordable Modification Program or Home Affordable Modification Program Military Modification.
- If you live in a state that features in the list of states most affected by housing price declines and the recession, then you may qualify for the federal government’s Hardest Hit Fund. Besides, you may also try options outside of the bank or government programs, such as HOPE NOW.