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# HowTo Package Your Loan Mod Application Kit
# HowTo Phone Negotiation Tips
# HowTo Complain & Motivate To Get Action
# HowTo Follow Up by Phone, Fax, Mail
# HowTo Use a Qualified Written Request
# HowTo Use a Mortgage Audit As Your Ultimate Weapon
# HowTo Fight Rejection Tactics
# HowTo Stop a Foreclosure Sale In 1-Day
# HowTo Remove Bad Credit & Raise Your FICO Score
# HowTo Eliminate All Your Debt

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Q: How do I get Bank of America to do a home loan modification?

Question: I want BofA to modify my home loan. What are the best methods to use to get approved?

Answer: You will need to prepare a loan modification request package. You want to negotiate a workout agreement with a negotiator in the Loss Mitigation Department, not the collections department. Here is the contact number to use: 800-846-2222. Use this number for both the government program, Making Homes Affordable Plan and Loss Mitigation.

As with most lenders it will take bulldog determination, extreme patience and street smarts to fight for you loan modification if you want to keep your home at affordable payments. Call the Bank of America number and request their workout package to get started. // Article continued after video //

The journey to get your loan modification application approved is a challenge, but you can do it. Watch this video for some excellent tips.

Borrowers constantly ask loan modification expert, Mike Rockwood, and author of the loan modification kit I recommend, for help on how to talk to all the people you will encounter over the phone to get them to move the review process along to approve their loan modification application sooner rather than later.

In this Q&A coaching segment Mike, along with his son and business partner, gives many excellent strategies on fighting for your loan modification including:

  • 9 tips on effective negotiating
  • Why 50% of applications get rejected
  • Why rejection is a “good thing” (yes, really)
  • What to do next when you are rejected to fight for your approval

I recommend you take out a piece of paper and a pencil to take good notes.

Click here for more Q&A Video Coaching segments that will answer your urgent questions and give you proven strategies to fight for your loan modification.

FYI: As a last resort and for added protection if the clock is ticking against you towards a foreclosure sale date, learn how to stop foreclosure in a day to buy more time to work out a solution.

Once you receive the package you want to be very thorough to complete it and meet the initial qualifying criteria, which are:

  • This is the most important one: Demonstrate the ability to pay your new negotiated monthly payment. The lender will look at your debt-to-income ratio, aka DTI.

  • The type of loan: If you have one of those negative amortization loans, these types of loans are very highly likely to be approved for modification. If you have a fixed rate loan at 6% or less, you have a very low chance of getting approved.
  • Meet one of the 6 common hardships:
    1. Divorce
    2. Loss of income
    3. Reduction of income
    4. Death of spouse, co-borrower
    5. Illness
    6. Military service
  • Age of the loan: Your loan needs to be at least 9 months old
  • Balance sheet strength. This is more important for recourse loans.
  • Default status: The lender doesn’t want to see a BK during the life of the loan; foreclosure is not within 30 days or so
  • Owner-occupied loans are the easiest to be approved and home equity loans on investment property are also getting modified

FYI: If you don’t meet this criteria for any reason, like you’re currently unemployed, so you can’t show the ability to pay even a lower monthly payment, there is a last ditch tactic that can stop a foreclosure to buy you some time, even several months. Hopefully with some more time you can be in a position to negotiate a loan mod.

These are two very important documents you will have in your package that mean approval or denial:

  • Hardship letter
  • Your budget: The DTI-ratio calculation, the cashflow calculation and the income must be exactly what the lender is looking for to meet their guidelines.

Here’s 5 tips we learned from our loan modification coach that were really helpful:

1. Transfer your liquid assets out of your savings and checking accounts or certificates of deposit that you have with the lender you’re trying to negotiate with such as Bank of America, Chase Bank, Wells Fargo. This prevents them from using those funds as leverage on the loan. And don’t close the accounts, just empty them.

2. Expect to initially get turned down. It may take 2, 3, 4, 5 times before you get approved. If your package is bullet-proof, it is likely some stupid mistake on the lender’s part like an error in their calculations.

3. If you’re getting turned down, call back at least 5 times and talk to a different rep and make slight changes each time you call. For example try changing the amount you have available for repayment by $300 to $500 or increase your income slightly.

You’re trying to figure out in this roundabout way what is the cause of the turn down. When you do this, it gives the rep a reason to go into your file.

4. If you’re not getting anywhere with the rep, ask to speak to their supervisor/manager. If their supervisor is not available to talk right then, ask them to call you back as soon as possible. Get a name if you can. If you have to follow up you have a specific person’s name to ask for.

5. Make sure you show positive cash flow on your budget. Forget about trying to get approved with negative cash flow.

These are just some of the great strategies we learned to use to negotiate a loan modification.

Before completing and sending in a loan modification package, you may want to obtain some coaching to combat the stall tactics banks/servicers are using to cut to the front of the line of other applications and get approved faster

Click here to get proven help with your home loan modification

Homeowners – Need Some Sound Advice?

Get Out of Debt Workbook
Seasoned debt expert shares several little known but highly effective techniques guaranteed to get you out of debt fast – no matter how much you currently owe.
Stop Foreclosure
Get more help on fighting to stop a foreclosure with one of 7 options. For example, if a loan modification is not an option learn about a little-known government program that will stop a foreclosure in less than a day without an expensive attorney.

Also get the latest foreclosure news around the country, read Q&As and other resources.

Legally Restore Your Credit
If you are visiting this blog, you likely have mortgage lates, which are a big blemish on your credit report. Once you resolve your mortgage situation, you can legally remove those mortgage lates and all derogatory credit from your report without having to hire an expensive attorney or credit repair service.

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Technorati Tags: home loan modification, loan modification, mortgage loan modification, loan modification program, hamp government program

Related posts:

  1. Q: Do home loan modifications get approved by Bank of America?
  2. Q: How can I find out why Bank of America rejected my loan modification application
  3. Bank of America rejected loan modification despite mediation help
  4. Bank of America to clarify HAMP terms for customers
  5. Bank of America planning more principal reductions to qualified homeowners

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