The Home Affordable Modification Program, Bank of America & Your Home

Fortunately, the federal government has initiated several programs and a lot of incentives for homeowners. The Home Affordable Modification Plan (HAMP), for example, is something that will allow you to qualify for a lower monthly payment through loan modification.

All you need to do is determine if you qualify for HAMP, submit an application with a loan servicer, ensure that your debt-to-income ration is at least 31% and undergo the income verification process and trial period.

Things to Remember when Applying for HAMP through Bank of America

Since the option to modify your loan through the HAMP program was introduced as part of President Barack Obama's stimulus plan, a lot of homeowners lined up to take advantage of it. The problem is that if you are applying for the program through financial institutions like the Bank of America, there are a lot of instances when the application gets denied.

What if you're already facing a foreclosure and your HAMP application through the Bank of America got denied? This is a scenario which is less-than-desirable - so in order to counteract the frustrations that you might feel during the process, here are a few things that you need to keep in mind:

1. Exercise a lot of patience during the application process.
Did you know that there are a lot of homeowners who applied for the HAMP loan modification program for two to more than five times? At one point or another, their reapplication got approved - although if you're the impatient type, you may not reach this point as a result of being frustrated.

What's important is to make sure that you are aware that it is possible to turn no into a yes - as long as you put your financial records in order to increase your chances of having HAMP approved the second, third, fourth or even fifth time around.

In relation to this, it would also help if you will treat the loan services with friendliness and patience - having the right attitude simply makes going through the process feel a lot better.

2. Make sure that all the necessary paperworks are in order.
One of the most common reasons why HAMP applications get denied in the first place is that applicants do not submit all the necessary paperwork. To increase your chances of getting approved, make sure to submit all the requirements needed for the income verification process.

3. Escalate your request from one level to another if you need to.
Again, as a result of the President Obama's stimulus plan, financial institutions like the Bank of America got flooded with HAMP requests. So it is no wonder why a lot of applications end up getting denied. If this happens to you and you know that you qualify for the loan, don't hesitate to escalate your request from one level to another. Make follow-up calls and learn about the loan application process inside out.

Information is definitely the key if you are facing a prospect as serious as a foreclosure. The good news is that with programs like HAMP, you can take advantage of the federal government-initiated programs that will make paying for your home loan a lot easier on your household budget - so that you can save money and keep your house at the same time.

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Mortgage Refinancing in Today's Economy

Many people are under the impression it is all but impossible to refinance in today's economy. While it is more difficult in some situations, mortgage refinancing is more than just possible - it remains a viable financial planning tool for millions of households. Here is what you need to keep in mind when trying to refinance your mortgage in today's economy:

1. Better Credit. Tighter lending standards are beginning to take a toll so expect to encounter more stringent criteria in order to obtain the best interest rates. However, with interest rates at historic lows, it is still possible to reduce your monthly obligations with mortgage refinancing even without qualifying for "prime" rates.
   
2. Keep the Paperwork. Not only are banks cracking down on lending standards and requiring better personal documentation in order to obtain a loan, but be prepared to provide documentation for all improvements and upgrades performed on the property.
   
3. Know your Neighbor's Value. You may not be your brother's keeper but for better or worse, your neighbor's property values are likely to impact yours. Because banks and other lenders rely heavily upon comparable values for mortgage refinancing, anything that helps or hurts your local neighborhood or community is likely to help or hurt your property value as well.
   
4. Shop Small. In prior years it was often easier to do business with a big nationwide bank but today all that has changed. With the recent crisis in the financial industry, many small banks and local credit unions are actually easier to deal with for mortgages and mortgage refinancing than their larger counterparts. It still makes sense to comparison shop for a refinance lender before making a final decision since rates and terms may vary.
   
5. Keep an Eye on the Bank. By now it should come as no surprise that banks are in big trouble; fortunately, it doesn't include every bank but it pays to keep an eye on the fiscal health of your banking institution just to make sure your mortgage refinancing doesn't fall through at the last minute. In fact, many homeowners and buyers alike are taking the added precautions of submitting a back-up application when buying or refinancing a loan just to assure they are able to lock-in rates and have access to credit should their existing bank falter. If you aren't convinced about the stability of your banking organization it is often a good idea to verify the fiscal health and stability by visiting the FDIC at www.fdic.gov. They provide a list of bad banks at risk for bankruptcy just for the asking

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