Bank of America Cutting Principal Balances on Mortgages. Do You Qualify?

29 Mar 2010, by Benjamin Luftman in Bankruptcy, Consumer Law, News

Bank of America announced a new plan to cut the principal on loan balances by up to 30% for Countrywide borrowers.

According to an article from CBS News, the bank estimates that 45,000 customers only will qualify (BofA currently holds 1.2 million loans that are in default) for principal reductions that will average approximately $60,000.

Here are some of the details of the BofA program:
– Invitation only: don’t call your local BofA banker and expect him to lop off tens of thousands of dollars from the loan-the bank will contact you if you qualify
– The program is for Countrywide borrowers
– Loan balance must be at least 120% of the estimated home value
– Borrower must be at least 60 days overdue
– Borrower must demonstrate financial hardship

If you are interested in talking with an attorney to discuss bankruptcy options and you are would like to know how Bank of America’s new plan will affect you, please give our office a call at (614) 224-1500.

click here to read more about the new mortgage modification plan.