Forbearance Agreement Bank of America

As the COVID-19 pandemic continues to wreak havoc on the economy, more and more homeowners are finding themselves in need of assistance from their lenders. One option available to those facing financial hardship is a forbearance agreement, which can provide temporary relief from mortgage payments.

If you have a mortgage with Bank of America and are struggling to make your payments due to COVID-19 related financial difficulties, a forbearance agreement may be an option worth considering. Here`s what you need to know.

What is a forbearance agreement?

A forbearance agreement is an arrangement between a borrower and lender where the lender agrees to temporarily reduce or suspend the borrower`s mortgage payments. This can provide much-needed relief for borrowers who are facing financial hardship due to illness, job loss, or other unforeseen circumstances.

It`s important to note that forbearance is not forgiveness – you will still owe the missed payments at the end of the forbearance period. However, it can provide breathing room for those who are struggling to meet their monthly obligations.

How do I apply for a forbearance agreement with Bank of America?

The first step is to contact Bank of America and explain your situation. You will need to provide documentation of your financial hardship, such as a letter from your employer stating that you have been laid off or furloughed, or medical bills if you or a family member have been ill.

Once you have provided the necessary documentation, Bank of America will review your case and determine if you are eligible for a forbearance agreement. If you are approved, the bank will work with you to determine the length of the forbearance period and the terms of the agreement.

It`s important to note that Bank of America and other lenders are experiencing a high volume of forbearance requests due to the pandemic, so it may take some time for them to process your application. Be patient and follow up as needed to ensure that your case is being reviewed.

What happens at the end of the forbearance period?

At the end of your forbearance period, you will need to resume making your regular mortgage payments, plus any additional payments necessary to repay the missed payments from the forbearance period. Bank of America will work with you to determine the best repayment plan for your situation.

It`s also worth noting that forbearance agreements may have an impact on your credit score, as they are reported to credit bureaus. However, if you are able to resume making your payments on time after the forbearance period, your credit score should recover over time.

In conclusion, if you are a Bank of America mortgage holder and are struggling to make your payments due to COVID-19 related financial difficulties, a forbearance agreement may be an option to consider. Contact Bank of America today to learn more about your options and how they can help you weather this difficult time.

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