What Will Happen if I Do Not Pay My Bank of America Mortgage?

If you do not pay your mortgage, you will lose your home.

A mortgage is a lien against property. It is an obligation that you have agreed to pay. If you are unable to make the payments when they are due, you should contact Bank of America and try to work out a different payment arrangement. The worst thing you can do is to ignore the situation. Bank of America will have no choice except to begin foreclosure proceedings.

Bank of America

As of February 2011, Bank of America is one of the largest real estate lenders in the United States. Beginning in early 2009 it developed a large inventory of homes it acquired through foreclosures. In 2010 it started a program offering loan modifications to delinquent borrowers, and in 2011 it streamlined the process. In the 2011 market, if you can make a reasonable payment every month, Bank of America will work with you to lower your payment by lowering your interest rate or extending the term of your loan. Contact the bank as soon as you experience problems making payments.

Foreclosure

If you cannot pay your mortgage payment and you do not call Bank of America to make other arrangements, it will start foreclosure proceedings against your property. You will usually have three months to bring your mortgage current. If you do not bring it current, you will receive another notice indicating a sale date. This is the date that the bank will auction your home to the highest bidder. If no one bids on your home, Bank of America will become the new owner. The bank really does not want to acquire additional homes. They will try to work out an agreement with you if you contact them.

Alternative

If you cannot work out an agreement with Bank of America, you should talk to it about a "short sale." A short sale lets you sell your home for less than the amount you owe on the property. The bank agrees to accept the selling price as payment in full. If you do not have any money to make your regular payments, there is no way you could pay the difference owed to the bank. A short sale will appear on your credit history, but that is better than a foreclosure.

Bankruptcy

If all else fails you can file for bankruptcy protection. Filing gives you time to either work something out with the lender or find another place to live. Discuss this with your attorney. The bankruptcy will remain on your credit report for 10 years.