The Bank of America forbearance program is an option that is available for homeowners who are facing a short term, temporary financial hardship or crisis. The homeowner will need to eventually repay any mortgage assistance provided from forbearance. The fact any assistance will need to be repair is the primary reason it is a possible solution for people who are experiencing a short term hardship. It is not a long term solution.
The primary goal of forbearance from Bank of America is to help homeowners get their home mortgage payments completely suspended or reduced for a short, defined period of time. While the time period covered by forbearance will vary, in general it will range from 3 to 6 months.
First and foremost, in order to qualify for forbearance the applicant needs to have some type of temporary financial hardship or short term crisis that they are facing that impacts their ability to make their monthly mortgage payments. Examples can include a loss of income that can occur from a medical condition or emergency, a temporary reduction in income or hours at work, or some type of natural disaster.
One of key conditions is to know that for a forbearance to be offered, the personal situation that the homeowner is experiencing needs to temporary and have some type of resolution in the not so distant future. Some examples would include if the applicant has a short term medical condition that causes a reduction in their household income, but has a end date in sight. Another example would be 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. A third example would be with the weak economy, some homeowners have had their hours cut back at work for a short term, defined period of time. These are a few examples of when BOA would consider offering the homeowner forbearance.
In addition, for the bank to offer this option, the applicant must not have missed any monthly mortgage payments prior to their financial hardship, and their account needs to have been in good standing with Bank of America as well up to the time they applied.
In order to apply, you need to call the bank, discuss your financial situation, and you will need to send the bank a Hardship Affidavit. They will review your application, if they they approve it, BOA will send the homeowner a letter outlining the terms of the forbearance agreement, and the future repayment schedule after the hardship is over.
Also, be sure to remember that if you are approved and agree to the forbearance program offered by BOA you will need to eventually repay any assistance provided to you. This will be required when the individuals situation improves. The homeowner will be required to repay any past due amount from the unpaid months of their monthly housing payment. They will need to pay the interest, principal on their mortgage, property taxes and any homeowners insurance.
To begin the process, you need to call Bank of America at 1.800.669.0102.
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