Bank of America Loan Modification RMA Form Application Package

Bank of America Loan Modification Request For Mortgage Assistance (RMA)

BAC Request for Mortgage Assistance (RMA) Package is a document that you will be required to complete and submit as the first step while applying for Loan Modification with Bank of America. It is must that the paperwork that you use must be the latest. It will help you a lot to consult with a professional or your lender before submitting the paperwork. There are many professionals you can work with to get help but it is very crucial to find the right ones so that the process goes on smoothly. That’s why we put the latest paperwork we could find online; to help you. That is what we do as we are a company working to help our customers with Mortgage relief.  Click here to request a call from a loan mod pro or call 888-934-3444. 

Bank of America Hardship Letter

Bank of America has a Hardship letter affidavit built into their application which states your hardships,

What is a loan modification?

First let us tell you what Mortgage Loan Modification is not. Loan Modification is not the same thing as a refinance. Refinance will be when you want to get a second loan to pay off your first loan. While doing Loan Modification you cannot combine loans that are first mortgage or second mortgage. In a loan Modification we do exactly what it sounds. We will work with you and your lender to get the terms of the loan modified.

What terms can I change on my mortgage with a loan modification?

Banking industry does not has the potential to think outside the box. This is the reason that the things you can get modified for you mortgage are very limited.

Interest Rate Modification

The request which we get the most is that people want to change the interest rate. The mortgage servicer will push to reach affordability to it will be based on your income.

Loan Term Adjustment Mod

The total life of the loan can also be adjusted but this will not work in the same way as they have been seen adding payments to the back of the loan. You cannot get the loan extended for the period of your missed payments. The company will extend the loan back to its original length of 30 years in most of the cases. We have seen as much as 50 years, but as 30 years is the norm, any extension beyond is generally no more than 40. Beneficiary of the note and the limitations they set completely control this.

Principal Capitalization and Principal Reduction Modification

The lender will take the payment that you are behind on which is called as Principle Capitalization which will include any past due payment, interest, and fees later adding them to the outstanding balance of what is owed. In rare cases that are generally dictated by the amount of perceived equity in the home (or lack there of) the investor on the loan may be willing to take a reduction on the principal owed

Getting Your Forms Submitted To Bank of America To Get The Process Going. What is in the Bank of America Loan Modification Package?

All the lenders have the usual document requirements and this is not limited only to Bank of America. You will have to provide your financial information to you servicer such as a monthly budget, your tax returns for the last two years along with a 4506t to show the returns were actually filed, pay stubs or proof of income like a profit and loss, bank statements, reason for requiring to do a loan modification, and a hardship letter.

Getting The Right Value Goes A Long Way.

The lender will want to balance out all the options available to the homeowner while doing the Loan Modification. One way the lender can check is to check if the value is acceptable. There are many ways to do a valuation including some ways in which the value is obtained online. In some cases a value is completed by a real estate agent, also known as a Broker’s Price Opinion (BPO), In this type, the broker compares the properties in the area. In some of the cases the broker may also want to do an interior valuation in which case they will want access to the home. In some cases only a drive by is enough. The person making the valuation will compare properties that are currently isted and which have been sold recently doesn’t matter which type of valuation they are doing. They consider the homes perceived condition, the size of the living space, the size of the lot, how many stories it has and whether or not it has a pool. They will also consider market conditions and how fast homes are selling in the area. There are many factors they take into consideration.

Loan Modification Appraisal Values

The investor which Bank of America is representing will require a valuation in some cases. In this case the lender will do a valuation based on a computer also known as an Automated Valuation Module (AVM). The cases in which the investor will hire a broker to do a valuation are very rare due to the costs. The cases in which the investor hires and appraiser are even rarer. The homeowner may be required to pay upfront fees in some of the cases for these services.

Filing Value Disputes and Variances

Any person can make a mistake doesn’t matter if they are a professional or a layman and the value returns too high or too low, you may have to deal with a value dispute. Depending on who the investor is or if it’s insured there may be different processes for filing disputes with Bank of America or another managing entity.

Bank of America’s Net Present Value or NPV Process and Analysis.

At this time after the value has returned the lender will make a decision as to your qualification for the Loan Modification. Usually there is an auditing process before the submission to management and if approved there is often another auditing process the occurs before an approval letter is issued.

Bank of America NPV Counters

NPV stands for Net Present Value. NPV is an algorithm that the investor uses to get the value for their money. This is also not a stable value. It changes from day to day. In an NPV the investor will look at two seperate homeowners and see where they can make more money. The lender will have to see whether taking the amount owed and increasing the account balance is worth it or not as the client is already behind on the payments. Homeowners have to know that when the numbers don’t add up for the investor that is when they are most likely to get declined.

Bank of America NPV Counters

Countering the NPV decline is easy you will only have to look at the parts that don’t make sense and attack those parts. Look at each point and try to figure out what the feasible output should be. The most typical are incorrect income figures but it could go beyond that to things like the property’s perceived value and even in some cases the consumers credit report.

Three Payment Plan

You will in some cases will put on the trial payment plan for three months if you get approved for loan modification from Bank of America. You will not know what the finalized terms will be that they are offering you but the final payment should be inline with what you will be paying for the mortgage at least at the onset of the new plan.

Bank of America Modification Complete

Before the completion of the Loan Modification process there is a finalization process. If you have been placed on trial payment plan then the finalized loan documents will be sent out somewhere between second and third payment. They usually come with a prepaid package to return the documents to the lender. Once the documents are returned and the loan modification goes through the final audits with underwriting the master loan documents are amended to show the new terms of the loan.