Bank of America committed $11 billion to mortgage principal reduction as part of the robo-signing scandal settlement, and last month, Bank of America announced a major initiative addressing this sum.
This summer, a group of 200,000 distressed homeowners selected by Bank of America will receive proactive principal reductions of up to $150,000 dollars. This group of homeowners will be notified via letters in the mail, which will be sent in waves throughout the summer.
After receiving the letters, these homeowners will be responsible for proving their eligibility, which includes:
- Homeowner must be "underwater" on their mortgage
- Homeowner's loan must be owned by Bank of America or serviced by Bank of America for an investor who approves the modification.
- And the homeowner must provide documentation of income and the ability to make payments under the terms of the modification.
If you know of homeowners who have a Bank of America loan and may be eligible, be sure to tell them to check their mailboxes this summer! The modification can only occur if a homeowner opens and responds to the letter.
