Contact Us

Bank of America Starts Mortgage Reduction Effort

(Photo by Joe Raedle/Getty Images)
(Photo by Joe Raedle/Getty Images)

Bank of America said it planned to contact more than 200,000 homeowners who could be candidates for the offers, sending letters to a majority of them by the third quarter of this year. Which to you and me means around summer time.

That’s the good part.

To be eligible for the principal reductions, homeowners will have to meet certain criteria, including: having a loan owned or serviced by Bank of America; owing more on the mortgage than their property is worth, and being at least 60 days behind on payments as of the end of January. That’s where the snag appears.

The bank said it had started making such offers in March to a narrower group of homeowners, those who were already in the process of seeking mortgage modification. The bank estimated that the earlier wave of trial reduction offers to about 5,000 people could amount to more than $700 million in forgiven principal. But homeowners have to make at least three timely payments for the reductions to become permanent.

So, if you have a Bank of America loan, and you are upside down, maybe make a phone call or two.

An interesting side note, Bank of America appeared on the Fortune 500 at number 5. Wonder if they are trying to earn some good Karma?

More from KOOL 101.7

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://kool1017.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on Kool 101.7 Radio quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here

Register on Kool 101.7 Radio quickly by logging in with your Facebook account. It's just as secure, and no password to remember!