Mid Bank Of America Trial Modification Period

Mid Bank Of America Trial Modification Period - When Can I Move?

by Elaine
(California)

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Mid Bank Of America Trial Modification Period - When Can I Move?

I was out of a job and fell behind on my Bank of America home loan payments.

I began the process of applying for a home loan modification. During this process, I left a lower paying job and was hired by a company that I must now commute over 138 miles (one way) to work.

It is a well paying job and I am very thankful. I am now in the 3 months trial payment period at Bank of America, having two more months to make a payment.

I would like to relocate to live closer to my new job, and rent my current home out.

In the beginning of the modification submission process it was stressed that my home must be owner occupied, but I am not sure when I am free to move.

It looks like I already have a renter, will this matter?

Should I wait until everything has been permanently modified?

My last trail payment will be in September.
Please advise.

Bank of America Mortgage Loan Modification Answer:

by B of A Mortgage Loan Modification Expert - Dan North

If all the data you sent to Bank of America was true at the time you applied for loan modification there are no fraud issues. If material facts change after the application and no updates are requested before the permanent loan modification is approved there is no violation of HAMP guidelines.

This means if you move out and start renting, your permanent modification could go through without a hitch.

The if here is that Bank of America could come back and want new data or for some reason run a new credit check. It is not uncommon that a landlord would run a credit check on new renters which would show up on your credit report.

The other point to keep in mind is that B of A will take longer than 3 months for the trial period. Six months or more is not uncommon before a final decision is made on permanent loan modification.

There Is Some Gamble In Moving Out Before The Modification Is Completed

Whatever you decide to do, leave the utility bills in your name and being sent to the house address. BofA will often use utility bills as proof of residence. Also do not change your driver's license address until after the modification.

Use your new residence as temporary residence for work and keep your home as your primary residence. If new paperwork is requested on your finances you will need to add the new rental address as work related expense and will have to report that you have taken on a renter to take care of your primary residence when you are out of town on work, do report the rental income. The new rental income will change your monthly gross income for HAMP (which could mean no HAMP modification) but would be cancelled out by the work rental expense on an in-house modification.

(Word of caution: Bank of America is notorious for "losing" the paperwork and asking for new updates every 90 days.)

Once The Mortgage Loan Modification Is Permanent You Are Set

As soon as you have the signed and executed loan modification agreement from Bank Of America you can do what ever you want. Once those papers are signed it is a legally binding contract that is enforceable except when there is fraud or deception in the facts as presented for the agreement.

These are important points to keep in mind when deciding what to do.