Bank of America Loan Modification

The Bank of America is the largest bank in the U.S. by assets, and the second largest in terms of deposits. It is also one of the country’s leading lenders for both prime and sub-prime mortgages. In recent years, Bank of America has also started working with delinquent borrowers to help them stop foreclosure and get current with their loans.

The bank gives borrowers three options to stay in their homes: forbearance, repayment plan, and loan modification. For homeowners in serious financial need, the most viable choice is usually loan modification. The Bank of America loan modification program is available to all borrowers in default, but not to vacant or abandoned properties. An exception is when the home is vacant due to valid circumstances, such as job transfer or the death of a co-owner.

Bank of America loan modification works by changing the terms of the mortgage, usually to a lower fixed-rate term after an adjustable-rate sub-prime loan has reverted to regular rates. This can vary depending on the borrower’s situation. Other Bank of America mortgage modification options include interest rate reductions and principal reductions on adjustable rate mortgages that have lost equity value.

Borrowers who do not qualify for Bank of America loan modification can opt for other methods, such as a short sale or deed-in-lieu. Although this doesn’t keep borrowers in their homes, it helps them avoid the credit damage of foreclosure and find other ways of financing.