B of A extends modification offers
Bank of America Home Loans has begun reaching out to customers who may be
eligible for forgiveness of a portion of the principal balance on their
mortgage under terms of a recent settlement among five major banks, 49 state
attorneys general, and the federal government.
The first letters in a targeted outreach to more than 200,000 potential
candidates for this assistance are arriving in homes this week; most of the
letters will be mailed by the third quarter of this year. The bank estimates
average monthly savings of 30 percent on mortgage payments of customers who
qualify for this program.
Bank of America began making principal reduction offers under the program
guidelines in March, initially concentrating on homeowners who were already in
the 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. Homeowners are required to
make at least three timely payments before the modification can become
The wave of mailings beginning this week will reach a broader base of customers
who may be eligible for this principal reduction program. The letters provide
each homeowner with a description of the program and an invitation to provide
financial information to begin the review process.
To be eligible for this program, a homeowner must meet certain criteria,
- Owes more on the mortgage than the property is
- Was at least 60 days behind on payments on
January 31, 2012.
- Has a contractual monthly payment for
principal, interest, property taxes, hazard insurance, and any applicable
homeowner association fees totaling more than 25 percent of gross
For further information on the settlement programs, Bank of America Home
Loans customers may call (877) 488-7814.
- Has a loan that is owned and serviced by Bank
of America, or serviced for another investor that has given the bank
delegated authority to do such modifications.