Information on the Bank of America Military Loan Modification Program.
Active military members, their families and veterans can get help from the Bank of America Military Loan Modification Program. It was created as another tool in the bank’s effort to assist the United States military forces, no matter their branch of service. Any military member, or their immediate family member, who is struggling to pay their home loan may be able to qualify for assistance.
Several mortgage protections and key benefits have been offered to service members who are deployed, who are located oversees or who are beyond active duty. The loan modifications can lower their interest rates, waive any unpaid fees, reduce their principal balance, and provide other forms of assistance. Some of the key way the Military Loan Modification Program helps are below.
- Very low interest rates can be offered for customers who are eligible for Service members Civil Relief Act (SCRA) protection. The rate was as low as 3%, but it can go lower based on market conditions.
- The loan modification can include a principal forgiveness program for military homeowners who are behind on their payments when leaving active duty. The program builds on the federal government's Home Affordable Modification Program (HAMP) and provides borrowers access to solutions starting with principal reduction measures to help customers achieve a more realistic and affordable mortgage payment as determined in the HAMP guidelines.
- Bank of America has created a dedicated mortgage customer service unit dedicated to servicing military customers and/or veterans.
The Military Loan Modification Program builds the national lender’s long-standing dedication and commitment to supporting all branches of the United States military forces. Housing specialists and credit counselors will help homeowners address the heavy burden of financial matters at home while they are deployed. With military members making unique sacrifices for our nation, these men and women face extraordinary circumstances. So BofA does what it can to help those in need.
The Bank of America program goes far above and beyond any other existing government and private mortgage programs to assist military customers. Various resources and highly trained specialists are available to support those who are leaving active duty domestically or abroad and who may be struggling to pay for their monthly mortgage payment.
As indicated, this is a powerful program. If you are found to be qualified, first of all the veteran or military member will be provided immediate principal forgiveness on their loan in order to reduce the amounts owed related to their mortgage. This reduction can be as low as 100 percent of the current market value. Many studies show that principal reduction is one of the most effective ways to help homeowners. Secondly, a reduction of the interest rate, and subsequent extension of the term of the loan, is offered in order to help customers achieve a more manageable and affordable monthly mortgage payment. The interest rate will be as low as 4%, or maybe even lower if market conditions warrant. The loan term may be extended too. The new, lower interest rate will be applicable for the duration of the homeowners active duty and it will even last for up to 12 months after their release from the service.
The program is wide ranging and open to many people. Initially, Bank of America will offer the Military Loan Modification Program, principal adjustments and reduced interest rates to distressed military customers who currently have loans serviced by the bank. However, B of A is constantly looking to expand this offering with other lenders and banks, as they are all trying together in order to expand benefits to all the military customers and veterans.
A dedicated customer service team of housing specialists has been created for customers who are in the military. This customer service unit allows service members who have their mortgage from Bank of America to call one number, and to speak to one team of highly trained professionals in order to explore all their options and assistance programs. The team can answer questions and try to satisfy any needs they have related to the bank's full range of SCRA benefits and mortgage options. Call 888.325.5357 to reach the customer service unit.
When considering all of the nation’s major lenders, Bank of America may do the best job in recognizing the special considerations and complexity of customers who serve in the military. They have a strong relationship with the Department of Defense and other non-profits and government organizations. They have been providing specialized financial and housing services to military personnel since 1920. The bank has provided millions of dollars in grants and other financial support to non-profits who focus on veterans, and they also offer an employee-based Military Support Affinity Group, which provides mentoring, networking, and information forums to help in the development of service veterans.