Home Affordable Refinances Finally Start

As we wrote a couple weeks ago, most lenders haven’t started processing Home Affordable Refinance or Home

Affordable Loan Modification packages yet.

Well that’s beginning to change…finally!

Bank of America announced Friday that they’ve begun accepting refinancing applications under the program.  As you probably know, Bank of America is one of the country’s largest mortgage servicers.  As a matter of fact, since they bought out Countrywide mortgage, they own or service nearly 1 out of every 5 mortgages in the country.

This announcement means that Bank of America is one of the first lenders/servicers in the country to begin accepting applications.  The bank says they’ve had nearly 200,000 homeowners contact them about Home Affordable Refinances since the President first announced the program in early March.

So if your mortgage is serviced by Bank of America or Countrywide, you don’t currently have mortgage insurance on your loan, and you’re eligible for a Home Affordable Refinance, you should start calling them as soon as possible.  Expect to wait awhile on the phone, but call them at 1-866-977-2941 today.

If you have mortgage insurance on your current loan, give them another week or 2 and then begin calling.  They will be able to help you…just not right now.

If a Refinance Won’t Help You

While this announcement is obviously good news if you can refinance, but if you can’t take advantage of a refinance because you’re behind on payments or your home value has dropped too much, you’re probably waiting for news on Home Affordable Loan Modifications.  If this describes you, you should look at this announcement as good news as well.

Why?

Because it means servicers are one step closer to beginning to offer modifications as well.

As a matter of fact, Bank of America says it expects to begin offering Home Affordable modifications within the next 2 weeks.  And they’ve extended their foreclosure moratorium until April 30th to give modification eligible homeowners more time to apply before the foreclosure process begins again.

If Your Servicer Isn’t Bank of America of Countrywide

Remember that if you’re eligible for a Home Affordable Refinance, you don’t have to stay with your current lender/servicer.  Any lender can refinance your loan…as long as they are qualified to service Fannie Mae and Freddie Mac loans.

So call them if you want to refinance your current loan…if you want to refinance through Bank of America.

If you’d prefer to refinance through your current servicer, that’s fine.  We expect more lenders to be making similar announcements to this every day.  So call your servicer once every week or so to see if they’ve started taking applications yet.

More Info

Home Affordable Refinance eligibility requirements

Home Affordable Loan Modification eligibility requirements

Making Home Affordable Website

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