I am with Bank of america and they have granted me a hardship loan for the next 3 months. What are my chances of getting a loan modification and does anyone really know what the guidelines are I cant get an answer from them on this. Has anyone had a hardship loan and then was able to get a loan mod.
I am not sure what you mean by a hardship loan. The general guidelines for morgage modifications under the lateset government plan are that they will try to set your payment on a "trial basis" at 31% of your gross monthly income. If you make the payments for 90 days, they will "maybe" make the modification permanent.
You have to be very careful about the paperwork that you sign for these modifications, often the bank is trying to get new rights that they don't have under your base loan agreement. In some states, home mortgages are non-recourse (which means the bank can't go after you for a deficiency if they lose money), but under some of the modifications, they are able to gain this right.
Depending on your situation, you may want to refuse the hardship loan, or ask for a lot more than they are giving you before you sign anything. Also, make sure you get a good trusted attorney to review the documents (an attorney that you pay, not one the bank or government is paying). See my profile and send me an email to get my free report.
Tom has given you the basics. If you have a FNMA loan they are obligated to try to help you with a modification. Visit this link: http://portal.hud.gov/portal/page/portal/HUD to get the government guidelines. Go to home affordable sections and it gives you the requirements.
Fannie Mae has made some updates if your loan is a Fannie loan. You can find the information for Fannie @ http://efanniemae.com. Search their guidelines for modification; Home Affordable.
If this doesn't help you let me and you can visit my hubs for information also.
Again, B of A must offer you a modification prior to any foreclosure preceedings and yes it takes forever seemingly. You may have to push them as I am sure they do not want to do this if they can keep from it. But if you truly have a hardship that has not ended; they must help you.
I hope this helps. Linda
Working with Bank of America is one of the greatest chanllenges in life! Not just because they are so big and unorganized, but because they have call centers all over the world and they never seem to have the correct information. I've been in the loan and foreclosure arena for over 3 half years and ten years in mortgages. You need to stay on top of your application.. go blog.freehampreport.com or makinghomeaffordable.gov to understand the basics of the Home Affordable Modification Program HAMP.
I have also written articles in reference to working with bank of america google professor loan mod and some topics should come up!
Good Luck !
We just went through this with another bank. I wrote a detailed hub about our personal story.
Long story short, you can get really screwed if you don't read the fine print. Save your money because if the modification is denied you will be expected to pay the difference back. Best of luck!
hopefully your situation has improved since the last post - please update.
One **important** piece of advice - make sure before you consider entering into a home loan modification agreement that the bank or lender you are going through actually has POSSESSION of your mortgage and holds it. There is a lot of mortgage fraud going around nowadays where banks and lenders are doing modification when they do not in fact hold a person's mortgage. Then the homeowner soon learns through a foreclosure notice that the REAL lender is foreclosing on them! Search "mortgage loan modification scam" online and you will find thousands of stories.
Just be careful!!
Other potential options:
1. Short Sale,
2. Challenge the mortgage debt,
Just my thoughts... hope they help!
I got one and the hardship is a period that you must be current on their new proposed loan modification. Good luck.
Have you looked into the Making Home Affordable program? I believe BOA is a participating lender. Program details and requirements are available at http://www.MakingHomeAffordable.gov. You might also want to contact your local HUD office and talk to a housing counselor. They can help you fill out the application for MHA and direct you toward other options as well. Good luck!
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