The Real Stuff: Bank of America Writing Off HomeOwner’s Mortgage Debt
BofA Starts Writing Off Borrowers’ Mortgage Debt
More than 200,000 underwater home owners with mortgages through Bank of America may be eligible to have a reduction in the amount they owe on their loan, which could possibly trim their monthly payments by up to 35 percent. Bank of America has sent letters to home owners who may be eligible to take part in a program to write-off a portion of underwater home owners’ mortgage principal, reducing it by, on average, $150,000 each.
Home owners eligible for the principal write-offs must be “underwater” (owing more on their mortgage than their property is currently worth), have a loan owned or serviced by Bank of America, and be at least 60 days behind on their mortgage payments as of the end of January. In order for the mortgage reductions to be made permanent, home owners must make at least three on-time payments.
Wow, this is huge news. As one of the largest lenders in the country, BofA is ‘eliminating’ on average, $150,000 per loan. If you received a letter, this may be a great option for keeping your home. If you are too far gone, and can’t make up the payments, and participate in the program, remember there is another option beside foreclosures. Bank of America is a large participant in short sales, which save your credit score and cost the bank less out of pocket expenses than foreclosure. I will be glad to discuss the process and advantages of a short sale. Short sales are a win-win position for you and the lender. Foreclosure is a lose-lose for both!
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
\nBy: on May 8th, 2012 Category: Uncategorized