Bank of America

One of the biggest banks, Bank of America has announced it’s own Covid-19 policies to help the it’s clients make it through this tough time. This is significant news because Bank of America is one of the top lenders in american home mortgages. The company also offers refinance loans, purchase mortgages, reverse mortgages and debt consolidation loans. With so many different home related lending options, Bank of America had to step up it’s game during Covid-19 and the current economic turmoil resulting from Covid-19.

Bank of America’s CEO, Brian Moynihan announced it’s Covid-19 relief aid and stated that it will be offering a case to case mortgage deferral program. The biggest problem with this is that the only option they have is mortgage forbearance for 3 months and then 3 months worth of payment, plus the 4th month of payment due ALL on the fourth month. This is not the only option Bank of America CEO Brian Moynihan claims to offer. He’s said that all clients get a case by case basis and the Bank of America has stated that there are two paths to go down with mortgage forbearance. One includes mortgage deferment with 3 months of payment added on to the end of the loan, and the other path includes 3 months of no payment, and full repayment of everything owed on the fourth month. The big question here would be how many people actually qualify for the first option?

Bank of America’s Policy Changes include:

  • Not reporting any missed mortgage related payments to credit bureaus.
  • Allowing for mortgage deferment and mortgage forbearance.
  • Waiving the majority of mortgage and non mortgage related late fees. 
  • Pausing foreclosure sales, evictions, and repossessions.

What are your options for getting mortgage relief from Bank of America?
There are currently 3 options for some kind of mortgage relief given by Bank of America. The Bank of America Mortgage Payment Deferral Program, The Bank of America Payment Forbearance Program, and the Third Party Program

The “Bank of America Mortgage Payment Deferral Program” is available to clients who have only one month of missed payments due. The program will defer payments and extend the amount of your loan by three months. No lump sum payments will be due. 

The “Bank of America Mortgage Forbearance Program” will not extend your loan, but instead demand a lump sum payment plan. This plan is the only option for people who have already missed one month’s payment and are not able to make up the coming up payment sum.

For all third-party (government backed loans) Bank of America will follow their guidelines on how to handle their clients, and offer a mortgage forbearance program under those guidelines.

How to get Mortgage Forbearance from Bank of America
Call as soon as possible. Wait times are continuing to grow, and getting your mortgage aid options available as soon as possible could save you from a foreclosure by allowing you to have a deferment or loan modification plan.

What to say on the phone and terms you might need to know
On the phone, we would recommend you to ask as many questions as possible. Ask what a mortgage forbearance is, ask to see the documents you have to sign before receiving mortgage aid. Ask and question every single thing that they are giving to you. The banks are not on your side, and they could force you into foreclosure.

What to be aware of when requesting mortgage forbearance
What your repayment will actually look like and if there will be interest/late fee accrual. 

Calling us for Help
If you need more in detail advice on how to get the best mortgage aid possible, feel free to call. As a real estate professional for over 20 years, I can give you free advice to help save your home.

Source: https://www.housingwire.com/articles/bank-of-america-will-allow-borrowers-to-pause-their-mortgage-payments/