If you have a loan with the Bank of America and you find yourself in a situation of hardship, you could consider writing to them to ask for some sort of reprieve. It is very important, however, that you follow the accepted rules when it comes to these letters. This starts with identifying your hardship, and whether what you are experiencing counts.
What Is Hardship?
Hardship is a situation beyond your control that negatively affects your finances. For instance, the death of a family, a loss of a job, a sudden illness, a job relocation, divorce or separation, or an involuntary reduction in income, are all reasons for hardship. Generally speaking, this is also of a temporary nature.
Hardship letters are formal documents and must be treated as such. They should be properly addressed and written without grammar or spelling mistakes. The subject line should also include your account number. Furthermore, the letter should be short and to the point, focusing on facts rather than feelings.
How to Start Your Hardship Letter to Bank of America
Start your letter by explaining that you currently live in a property onto which a Bank of America mortgage has been secured. State that you have fallen behind on your payments, adding a specific date, and that you hope to come to a resolution. Explain that you are currently experiencing a situation of hardship and evidence this. Include copies of medical statements and bills, job changes, legal divorce proceedings, and so on. Again, make sure that you add the date of each of these happenings, so that the lender can create a timeline.
Make Your Proposal and Indicate How Long This Will Continue
You should then make an offer, which has to be one that you can afford. Do not make any promises that you will be unable to keep, as this will leave you in a much worse situation. Indicate exactly how much you are able to pay and from what date. You should also state any proactive steps you have already taken to lower your expenses, such as budgeting better and avoiding luxurious habits.
Finally, you should outline how long you expect the said situation to continue, and how you intend to repay the shortfall after the situation is resolved. Make it clear that you wish to remain in your property and ask whether there are any programs of the Bank of America that you may be eligible for. For instance, there is the Home Affordable Refinance program, the Home Affordable Modification program, and the Home Affordable Foreclosure program. Make sure that you indicate which one you are interested in.
Ending the Letter
End your letter by listing all your attachments. Those should, when put together, be a full financial statement of you and your current situation. If there is any other information that you believe may be useful, add it to the list as well. Finally, thank Bank of America for taking your letter into consideration and tell them that you await their response. Do keep copies of your letter and send it via registered post.
Hardship Letter To Bank Of America Example
{Account Number}
{Your Name}
{Contact Number}
Bank of America
ATTN: Home Loans
{Address}
{Address}
{Date}
To Whom It May Concern:
I am writing with regard to my home at {address}, which has a mortgage owned by Bank of America. I have been behind on my mortgage payments since {date}, and I am writing to begin the process of resolving this situation.
I fell behind on my payments because {detail the reasons for hardship, including medical problems, death, job loss, etc.}, which occurred {date}.
I am unable to pay the monthly payments as is, but I believe I can afford {amount in dollars} per month, beginning {date}.
My home {is/is not} up for sale, and the property taxes and homeowner’s insurance {is/is not} current.
I know that Bank of America has programs such as Home Affordable Foreclosure, Home Affordable Modification, and Home Affordable Refinance. I am interested in {name of the program that suits your needs}.
I have attached my financial information, including a detailed account of my income, recent pay stubs, and {any other information they’ve asked for or you think is relevant}.
It is my hope that we can bring a swift and satisfying resolution to this problem as quickly as possible.
Please contact me at your earliest convenience.
Sincerely,
{Sender Name}