Thread: Bank of America will cut loan amount for underwater homes

Bank of America will cut loan amount for underwater homes

Posted 9m ago
By Ieva M. Augstums, AP Business Writer

CHARLOTTE — Bank of America is taking a major step to help some of its most troubled mortgage borrowers. The bank says it will forgive up to 30% of some customers' loan principal.

The bank has said Wednesday it will start forgiving principal for homeowners who owe more than 120% of their home's value.

The plan, to begin in May, is among the first by a U.S. mortgage lender that takes a systematic approach to reducing mortgage principal when home values drop well below the amount owed. The effort is aimed at preventing foreclosures.

Bank of America, based in Charlotte, is the largest mortgage servicer in the country.

http://www.usatoday.com/money/economy/h ... cuts_N.htm

Geeez.....How do you get in on this gravy train?

Originally Posted by Captainron

Geeez.....How do you get in on this gravy train? :?

You have to have an existing Bank of America home loan and now your house much be worth much less than what you still owe on it. The bank is going to write off part of the principal.

Originally Posted by JohnDoe2

Originally Posted by Captainron

Geeez.....How do you get in on this gravy train?

You have to have an existing Bank of America home loan and now your house much be worth much less than what you still owe on it. The bank is going to write off part of the principal.

I realize that. I've been in a lot of situations that didn't pan out financially the way I expected. A house is an investment, and an investment can go up and it can go down. If this was a government program it would be totally outrageous, joining the other unfair and outrageous things happening.

It's not a government program, it's a bank program.