The Bank of America’s forbearance program allows homeowners who are experiencing a short-term, temporary financial hardship or crisis to remain in their home and avoid foreclosure. The homeowner will need to pay back any mortgage help they got from forbearance. If you need help, repairs are a possible solution for people who are experiencing a short-term hardship. This is not a permanent fix.
The main objective of Bank of America’s forbearance program is to assist homeowners by temporarily suspending or reducing their mortgage payments. Forbearance is a period of time, usually 3 to 6 months, during which a lender agrees to not require payments on a loan.
Terms of forbearance from Bank of America
To qualify for forbearance, the applicant must have a temporary financial hardship or short-term crisis that impacts their ability to make their monthly mortgage payments. Some examples of financial hardships include losing your job, having your hours at work reduced, or experiencing a natural disaster.
A forbearance may be offered if the homeowner’s situation is temporary and there is a chance of resolution in the near future. Another example would be if the applicant experiences a decrease in income due to a change in job status. Some examples of circumstances that could lead to a decrease in household income include if the applicant has a short-term medical condition or a change in job status. If the homeowner is unable to live in their home because of a natural disaster, such as a flood, and they are waiting for an insurance payment to cover the costs of additional living expenses that may be incurred as a result of it, this would be another example. Some homeowners have had their work hours cut back due to the weak economy. Some examples of when Bank of America would consider offering a homeowner forbearance are if the homeowner is experiencing a temporary financial hardship due to a job loss, illness, or death in the family. Forbearance may also be an option if the homeowner is behind on their mortgage payments but are working with a housing counselor to develop a plan to get back on track.
In order to be eligible for this program, applicants must have a good history of making monthly mortgage payments and have a good standing account with Bank of America.
To apply, you will need to call the bank and explain your financial situation. The bank may require you to send them a Hardship Affidavit. They will review your application and, if approved, BOA will send the homeowner a letter outlining the terms of the forbearance agreement and the future repayment schedule after the hardship is over.
If you are approved for a forbearance program offered by BOA, you will need to repay any assistance provided to you. This will be required when the individual’s situation improves. If the homeowner falls behind on their monthly housing payment, they will be required to repay the past due amount for the months they have not paid. The mortgage holder will need to pay the interest, principle, property taxes, and any homeowners insurance.
How to apply for BOA forbearance programs
To start, you will need to contact Bank of America at 1.800.669.0102.