The COVID-19 pandemic has touched all our lives. Many of us have been financially affected, some worse than others. Unfortunately, there are many who fear losing their home during this historic public health situation. But, the Bank of America has options. Here’s how to avoid foreclosure and stay in your home during the pandemic.
Coronavirus-Related Programs & Info
The lender has committed itself to doing its part to support your home loan needs during this difficult time. Some of its efforts include:
Forbearance or deferral. For temporary financial problems, you might be able to lower or suspend your home loan payments until your situation improves. Both payment deferrals and payment forbearances delay payment due dates, and there are no late charges.
Am I Eligible?
Whether you receive payment deferral or payment forbearance will be decided by your loan’s owners or insurers, according to a Bank of America mortgage – Bills.com review.
If the Bank of America owns your loan, the lender might be able to offer you a payment deferral or payment.
Options for End of Forbearance
If you’re in a situation where your forbearance period is over or if you need further assistance, you may be able to modify the terms of your Bank of America loan. To wit, you may be able to:
- Repay missed payments at the end of the forbearance.
- Establish a repayment plan that permits you to make up, over a period, missed payments, while you continue to pay your regular monthly payment.
- Shift your missed payments into a deferred balance that’s due by the loan’s maturity date or earlier.
If those options aren’t enough, the lending institution may be able to reduce your monthly mortgage payment by lowering the rate or extending your loan term.
You might be eligible for loan modification if your loan has gotten COVID-19 payment assistance via forbearance, or if you’re having issues making your mortgage payments because of financial hardship. Contact the lender for more eligibility requirements.
What About Program Fees?
One great thing about these programs is that there are zero fees or minimum credit score requirements. Having said that, you must cough up for specific costs, expenses, and fees related to the servicing of your loan that you incur before your modification application is finished and approved. Such fees, for example, could include those for a foreclosure attorney.
All prior unpaid late charges will be waived once your modification is deemed final.
When you call the Bank of America to talk about post-forbearance payment assistance possibilities, you’ll need to have handy your loan number, monthly pre-tax income, monthly household expenses, and info that supports your current financial hardship.
The bank will go over your situation and confirm your interest in modification. It’ll also send you a financial information packet if the program you’re interested in requires it.
During the whole process, a customer service manager will be available to answer any questions or concerns and assist you through required next steps.
What If You’re Ineligible or Get Declined?
If your financial situation changes, the bank is open to reassessing your program eligibility. If Bank of America cannot pinpoint an option that you can afford for you to remain in your home, you’ll need to discuss options to settle your home loan debt.
Now you know how to avoid foreclosure and stay in your home during the pandemic. The Bank of America is doing its part to make sure that happens. Contact the lender today.