For consumers looking for a Bank of America loan modification, there may be good news coming on the horizon as the company contemplates loosening guidelines. By negotiating a lower interest rate and / or lower monthly payment a person has a better chance of staying current on all their payments and reducing the chance that their home will fall into pre-foreclosure status. An attorney can often negotiate a much lower interest rate and monthly payment than a distressed homeowner acting on their own. Since Bank of America is such a large organization, it is quite helpful to have insight and experience with prior loan modification negotiations to secure the best results. Having an experienced attorney offers a great amount of leverage for the debtor, especially an attorney who has the knowledge and prior experience litigating loan modification matters with Bank of America. A debtor with leverage is a debtor who will owe less money in the long run.
While Bank of America offers their own debt management advice, getting a second opinion is always a good idea. When dealing with a major bank like Bank of America, remember that they are an institution in the business of making money and will ultimately do what they can to make a profit from your home, whether that includes you living in it or not. This can make the loan modification process adversarial. Many companies and even attorneys offer loan modification advice, but very few attorneys have the qualifications and ability to actually sue Bank of America if they fail to make a reasonable loan modification offer to the consumer.
Consumers considering attempting to change the terms of their Bank of America home loan are encouraged to look into modifying their loan with Bank of America now before policies change. Since B of A is such a large organization, the loan modification process can take quite a bit of time, so starting early, before the foreclosure process is too far along, is always the best option.
From the perspective of Bank of America, a loan modification may also be the best option because it is typically less expensive to keep collecting payments from the borrower on a more reasonable basis than it is to go through the costly foreclosure process. Negotiating a loan modification with Bank of America is usually less costly for both parties than forcing the bank to foreclose on a home. Although it may not seem like it, most lenders, such as Bank of America, would actually prefer to modify loans rather than foreclose, the problem is only loan modifications which are presented completely and pursuant to lender guidelines will be considered. For that reason, it often seems like Bank of America does not want to work with consumers on loan modifications.
The bottom line is, Bank of America has loan modification programs available to most borrowers, but such loan modification requests must be presented properly and completely at a reasonably early stage in the foreclosure process to get the best results. A qualified loan modification and mortgage litigation attorney can usually greatly improve a borrower’s chances of securing the best program terms as well with Bank of America.