Role of Bank of America in Curbing Foreclosure

What happens when your home is at risk of being taken away? You fight for it. That is why organizations such as Save My Texas Home exist. They are there to make sure that the bank doesn’t forcibly take advantage of the situation and evict you. Even so, there are numerous banks like Bank of America that have sought to help their clients. They are well aware that in this expensive economy, unexpected changes are bound to happen to anybody. That is why they have incredible options for a home owner to take in order to avoid foreclosure. Some of them include;

1. Mortgage modification: If a home owner faces difficulty in paying back the mortgage, Bank of America offers an opportunity for the homeowner to change terms of payment. This includes reducing the interest rates or extending the time for paying back the loan. Furthermore, the loan amount payable every month can be reduced to suite the homeowner’s capability. After making this change, they are main permanent till the completion of payment and the possibility of foreclosure will have been evaded.

2.Short sale: This applies when you owe the bank a lot of money than the value of the property. Bank of America gives you an option of selling the property and using the money to settle part of the capital loan. In doing so, your foreclosure will be written off and there will be no eviction. It is always hard to sell a home and remain homeless. In part of the agreement, Bank of America will also arrange for relocation to a new place. This option is available to those who are sure that they cannot pay back the bank its dues.

3.Releasing the property: This is slightly similar to short sale but the difference is that the bank will resume ownership of the property. The only thing that you have to do is to sign over the title deed of the property over to the bank and your foreclosure will be terminated. There are further two options to this effect. You can either hand over full ownership to the bank or the bank can hold on to your deed until you finish paying off the mortgage. The latter is good because it will buy you some more time to pay back the loan. In case of complete hand over of the property, the bank always organises for relocation.

4.Reinstatement: This is another formidable option where you are allowed by the bank to pay back the loan in lump sum. It only applies if you are going to pay the entire amount by a certain date. It is closely similar to the Forbearance plan which is also offered by the bank which allows you to make a reduces payment. It can also allow you tom stop making any payment for a given period of time.

5.Repayment plan: This plan allows you to pay your overdue mortgage loan with your monthly earnings. It only applies to people with a regular monthly income.

If you feel you have exhausted all options with Bank of America, or want to make sure you are not overlooking additional solutions, give us a call at 512-271-5044 or fill out the form on this page and we’ll get back to you with fast, free, professional assistance!

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