Loan Modifications that Reduce Principal: “Bank of America is sending out letters to potentially thousands of struggling Florida homeowners to let them know they may be eligible for a reduction in their loan balance that may save them up to 30 percent in monthly payments, the lender announced Tuesday. The latest loan modification offer is part of a $25 billion settlement involving Bank of America, four other major banks, 49 state attorneys general and federal officials. Bank of America officials said they had no immediate number of how many South Florida mortgage holders would be sent the letters; the heaviest concentration is in California and Florida, the largest of the hardest hit states. About 19,000 South Florida homeowners with Bank of America mortgages were at least 60 days late.”
Bank of America offers loan modifications that reduce principal
To be eligible for the new loan modification, the Florida homeowners must have been at least 60 days behind on their payments on Jan. 31, 2012. They also must owe more on the mortgage than their home is worth today. Bank of America began reducing the principal on some home loans in March, first granting the reductions to homeowners already in a modification review process.
So far under this early initiative, about 5,000 trial modification offers have been mailed, providing a potential total of more than $700 million in forgiven principal. The homeowners are required to make at least three payments on time before the modification can become permanent.
If you are suffering in today’s housing market, please call us, we are here to help with your loan modification negotiation, short sales and foreclosure disputes.
This information was obtained from: http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=275499