Bank of America starts Mortgage Reduction program
As we begin to see evidence of the Real Estate market settling, The New York Times is reporting that Bank of America is now preparing to provide a mortgage reduction program to assist homeowners facing foreclosure. Bank of America has started sending letters to thousands of homeowners across America offering to forgive a portion of their principal balance owed. On average, this is approx. $150,000 per loan amount.
They are estimating that the monthly savings that would be realized by the homeowners would be approx. 35% of their current mortgage payments. This new program is the result of the $25 Billion settlement agreement that B of A made with 49 state attorneys generals as well as fedral authorities related to their investigation regarding allegations and abuses over B of A's handling of foreclosures.
B of A said that it planned to contact more than 200,000 homeowners who could be candidates for the offers, mailing letters to most of them by the third quarter of 2012. There will of course be certain criteria that homeowners must meet to qualify.
For further information, please review the article appearing in The New York Times or contact your local B of A Loan representative.
It is about time that more programs designed to help homeowners stay in their homes come to fruition.
Posted on: Tuesday the 8th of May 2012.
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Written by: Ernesto Rivera