| Many people in today's housing market can relate to | | | | events. |
| the feeling of impending foreclosure. There are | | | | It is very important that you remain truthful in your letter |
| thousands of Americans that are struggling to pay | | | | to the bank. Don't over exaggerate and be to the point, |
| their mortgage and fees they have accumulated. Due | | | | give them the reason for you current difficulties and |
| to the high number of people facing foreclosure | | | | explain to them that you will be able to get back on |
| President Obama has created the "Make Home | | | | your feet if you can just readjust your current rates |
| Affordable" plan in hopes of keeping the majority of | | | | and term. The bank will look into the reasons you |
| homeowners in their homes and avoid foreclosure. | | | | provided to make sure that you are be truthful. It you |
| The plan includes Bank of America as one of the | | | | are caught in a lie you will be disqualified from |
| largest banks that will adhere to the new plan. | | | | refinancing or mortgage modification into a better loan. |
| When approaching a large bank like Bank of America | | | | Prior to actually submitting your application read |
| you should have the application properly completed | | | | through their guidelines and requirements. You may find |
| and all documents ready. One of the first steps you | | | | details that you don't agree with and you should make |
| will need to take is creating a financial hardship letter. | | | | sure that you are comfortable with all the new |
| The letter should have reasons for why you are in | | | | arrangements. Once you put your signature on the |
| your current situation and any reasons that have | | | | dotted line you will have a hard time rejecting any |
| caused you to not pay your current home mortgage. | | | | conditions they have listed in the contract. |
| There can be many different valid reasons for your | | | | You should also try to clean your credit report as best |
| difficult situation like loss of job or decrease in income, | | | | you can if you know for certain that it will hurt you. |
| medical emergencies, and death in family etc. Keep all | | | | However if you have good credit then it will be real |
| proof of these events should be readily available in | | | | hard for Bank of America to not accept your |
| case the bank asks you to provide proof of these | | | | application request for a loan modification. |