Bank of America initiates mortgage reduction effort

    
 

Monday, May 14 2012 3:24PM

Bank of America (BofA) recently sent out the first batch of letters to qualified homeowners offering to reduce their home loans as a result of the recent national settlement regarding alleged foreclosure abuses.

Bank of America (BofA) recently sent out the first batch of letters to qualified homeowners offering to reduce their home loans as a result of the recent national settlement regarding alleged foreclosure abuses.

Bank of America (BofA) recently sent out the first batch of letters to qualified homeowners offering to reduce their home loans as a result of the recent national settlement regarding alleged foreclosure abuses.

Homeowners with BofA loans may see as much as a 30 percent reduction on mortgage payments, or $150,000, on average. The $25 billion settlement with American homeowners will affect other banks, including Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial. Bank of America's penalties were reportedly the highest of all banks involved in the settlement.

The bank will contact more than 200,000 homeowners who owe more on their mortgage than their property is worth and have fallen behind on payments before the end of January. In a news release, Bank of America said 5,000 trial modification offers were mailed out, which could represent more than $700 million in forgiven loan balances.

"Building on home retention and payment assistance programs already in place, we are meeting our obligation to deliver this additional relief to our customers following the completion of the recent global mortgage settlement," said Ron Sturzenegger, Legacy Asset Servicing executive of Bank of America.

For further information, check out this source: The New York Times

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