Am I eligible for the National Homeownership Retention Program (NHRP)?
First, Bank of America (BOA) Home Loans will need to determine your financial situation and hardship. Once BOA has your current financial information, BOA will evaluate the your loan for all possible home retention options so that you can determine which option might be right for you.
You may be eligible for the enhancements to the NHRP if you meet the following program requirements:
- Have a Countrywide subprime mortgage, a Pay-Option adjustable rate mortgage (ARM) or a prime two-year hybrid ARM
- Originated your loan on or prior to January 1, 2009
- Are 60 days or more delinquent or in imminent danger of default and the current loan-to-value (LTV) ratio is 75% or higher (The LTV ratio is the ratio between the unpaid principal amount of your loan and the appraised value of the homeowner’s home)
- Have a subprime hybrid ARM and are current but believe you will not be able to afford your mortgage payment in the near future as a consequence of a rate reset, and the LTV ratio at the time of the modification is 75% or higher
- Have a Pay Option ARM and are current but believe you will not be able to afford your mortgage payment in the near future as a consequence of a rate reset or payment recast, and the LTV ratio at the time of the modification is 75% or higher
- Have a property that is a 1-to-4 unit owner-occupied residential property
- For the earned forgiveness program, be 60 days or more delinquent and the current LTV ratio is 120% or higher
- For the negative amortization principal reduction program, be 60 days or more delinquent or be current but reasonably likely to become 60 days or more delinquent (i.e. facing imminent default) and the current LTV ratio is above 95%.
***Note: You may go online and fill out the Financial Worksheet to update BOA on your current financial situation. BOA will compare this information to all available home loan assistance programs***
Exactly what will BOA offer to eligible borrowers?
BOA Home Loans offers a range of modification solutions for customers facing financial hardship. The NHRP is one of the programs that BOA offer for customers with subprime loans, Pay-Option ARM loans or prime two-year hybrid loans who meet program requirements. Other programs, such as the Home Affordable Modification program (HAMP), are also available and designed to provide more affordable mortgage payments to customers facing financial hardship. Modifications will provide more affordable payments using a combination of the following:
- Reducing interest rate
- Providing a term extension
- Providing principal forgiveness or principal forbearance
Once the enhancements are launched, BOA Home Loans will both mail and call all eligible customers to collect the necessary information and determine if they qualify for the NHRP.
How do I know if I have a Subprime loan, Pay-Option adjustable rate mortgage (ARM) loan, or a two-year hybrid ARM?
If you are not sure what type of loan you have with BOA Home Loans, please call them at 800.669.6607 and they can provide you with that information.
***Note: Prior to calling, please print out the Call Information Sheet and take note of your account number and any questions you may have. You’ll be given a lot of information during your conversations. It’s a good idea to take notes for future reference***
How do I find out if I am eligible?
Click here to determine if you are eligible through the online questionnaire
How do I apply?
Please call BOA Home Loans Customer Service at 800.669.6607.
BOA Home Loans will also be contacting eligible customers to see if they are interested in applying for the program.
When will the program start or go into effect?
The program launched in 2008, and was enhanced in mid-May.
How will the NHRP use principal forgiveness to make my mortgage payment more affordable?
The NHRP looks at each customer’s situation and determines how they can provide you with an affordable mortgage payment. Depending on your situation, the NHRP may use principal forgiveness to do this. The NHRP may offer principal forbearance with an opportunity to earn principal forgiveness.
Principal forbearance provides temporary relief during a time of hardship. This means after demonstrating a hardship, BOA Home Loans will defer or postpone your mortgage payment for a period of time. For purposes of NHRP and the HAMP, BOA Home Loans offers interest-free forbearance to qualifying borrowers for the life of the loan. At the end of the loan term or at the time the loan is paid off through sale or refinancing, any remaining forborne amount must be paid by the borrower.
You may also qualify for earned principal forgiveness where a portion of the debt or loan amount is waived and you are no longer responsible to pay back that amount. However, you must remain in good standing on your payments or you will not receive forgiveness. The principal forgiveness occurs over 5 years. The amount of principal forgiveness that you can earn remains the same for the first 3 years. In the 4th and 5th years, the amount of forgiveness may be less, if an increase in the property value since the modification was made would result in your principal balance dropping below the current value of the property.
***Note: There may be tax implications. You may want to consult a tax professional regarding your individual tax situation***
I wanted principal forgiveness when I was reviewed for a modification and I didn’t get it. How do I get it now?
All BOA Home Loans modification solutions are designed to bring a loan payment to an affordable and reasonable amount that borrowers are able to sustain over time. If you have completed a loan modification or are currently in a trial period for a modification, your loan likely received a rate forgiveness and/or term extension in order to achieve an affordable and reasonable payment. Principal forgiveness is another tool to achieve this same result. In addition, under the federal government’s HAMP, you can only qualify for one modification, so if you are in a trial period plan or a permanent modification, you would not qualify for another modification.
However, BOA will consider the application of the principal reduction enhancements to potentially eligible trial and permanent modifications, and will notify eligible borrowers accordingly.
I am in my Trial Period and have not received my final modification yet. How do I get a principal forgiveness too?
If you are currently in a trial modification, a solution to bring your mortgage to an affordable and reasonable payment has been achieved and no additional tools (including principal forgiveness) would be necessary. BOA encourages you to continue making timely payments and to return all required, completed documents to ensure your trial will convert to a permanent modification, as you cannot be considered for another HAMP modification if you do not fulfill your trial modification requirements.
Two months ago this would have helped me but now my house is on the market for a short sale. How do I get a principal forgiveness and a modification now?
Even though you have started the short sale process, you can still be evaluated for a loan modification unless you have already been in a modification trial period or have received a permanent modification. If your financial situation has changed, BOA can collect your new financial information and reevaluate your loan for this program and other foreclosure prevention options. Please call BOA at 800.669.6607 to learn how to provide this new information.
This is something I asked for months ago, and now I am in foreclosure. What are you going to do for me now?
If your financial situation has changed since your loan was last evaluated for a modification, BOA can collect your new financial information and reevaluate the loan for this and other foreclosure prevention options.
What happens if I can’t qualify for a modification or a principal forgiveness?
Your loan will be considered for all modification programs available to you to help you achieve an affordable monthly mortgage payment. If you are not eligible for a loan modification, BOA can discuss other options.
What do I do if my state is not mentioned or included in this agreement?
Your state does not have to participate in the program for you to be eligible or considered for a modification. If you are a BOA Home Loans customer, BOA can discuss your situation and see if you qualify for NHRP or other modification options to assist you. Please call BOA Home Loans Customer Service at 800.669.6607.
I have a rental/vacation/investment property. Does that qualify?
No. This program is only for owner-occupied properties.
I have a Home Equity Line of Credit (HELOC) or second mortgage. Does the NHRP apply to that loan?
No, the NHRP does not cover HELOCs or second mortgages. If you have a HELOC or second mortgage with BOA Home Loans, BOA will review it when they review your first mortgage. If your HELOC or second mortgage is with another lender, you will need to discuss your options with that lender.
If your first lien is held by an investor other than BOA or one of its subsidiaries and you have a second lien on the property, BOA is unable to consider your first lien for modification under the new programs, but they will review your eligibility for another solution using HAMP or their proprietary modification programs.
Do I have to pay a fee to participate, or are there closing costs related to this program?
There are no fees assessed for participating in any modification program with BOA Home Loans.
What if I’m already in the foreclosure process?
You may still be reviewed for a modification. If you are eligible for one of BOA’s programs, your foreclosure sale may be placed on hold while BOA works to qualify you for the program and work through the modification process. Please call BOA at 800.669.6607.
What if I’m current on my loan, but would like to be considered for this program?
Customers current on their loans may qualify for this program if they can demonstrate in good faith that they are reasonably likely to become 60 days or more delinquent as a result of a rate reset on a subprime loan or a Pay-Option ARM loan or prime two-year hybrid ARM, or a payment recast based on negative amortization on a Pay-Option ARM loan, and their LTV ratio is 75% or higher. You will be asked to provide financial documentation demonstrating financial hardship to qualify for the program. With respect to the recently announced principal reduction enhancements to the program, the negative amortization write-down solution is being offered to certain Pay Option ARM borrowers who are current on their payments but facing imminent default.
I’m current on my mortgage, but I owe more than my home is worth. Can I qualify for principal forgiveness?
If you are current on your loan, BOA will first evaluate you for the Home Affordable Refinance Program (HARP), which BOA is required to do under the government guidelines. If you do not qualify for a refinance, BOA will then evaluate your loan for the HAMP under Imminent Default if you have a financial hardship and will not be able to afford your current mortgage payment in the immediate future.
How long will BOA Home Loans offer this program?
BOA has expanded the program until December 31, 2012, six months longer than the original program date.