B of A Doing Principal Reductions For Many Homeowners

Bank of America Principal Reduction 

     Due to the recent settlement with the federal government over the robo signings. Many of the banks are having to revisit some of their policies on foreclosures. One such bank is Bank of America. They are taking the unprecedented step of providing principal reduction to their customers. So if you have a Bank of America loan product then you may benefit from this principal reduction on your mortgage. 

What is The Bank of America Principal Reduction?

     Bank of America is simply reducing the amount of outstanding principal that the homeowner owes the bank from current amount owed to one hundred percent of today's value. Bank of America is saying that the average will be about $100,000.00 for the average homeowner. Wow, that's a lot of money that will not longer be owed by the average homeowner. Think what that will do for your net worth. Retirement might actually start to look affordable again if you actually meet the criteria for this principal reduction.

What are the Criteria For Bank of America Principal Reduction?

     The criteria for Bank of America principal reduction are pretty simple. Let's see if you qualify.

• This must be a primary residence. So, no investors here. This is for homeowners that actually live in their homes.
• Your loan must be serviced by Bank of America. That doesn't mean that you originally got your mortgage from them but if through all the bank restructuring and buying and selling of loans your loan ended up being serviced by Bank of America then you may qualify.
• This is the big one you must be at least 60 days delinquent on your mortgage as of January 31st.

     So, those are the rules if you qualify for this program you should take advantage of it. To see if you qualify call Band of America at 877-488-7814.

Principal Reduction Controversy 

     There is a lot of controversy surrounding the whole principal reduction program or even the idea of principal reduction. A lot of people are asking, hey they have all these programs for people who didn't pay their bills what about the people who are current on their mortgages. I agree with those sentiments but I also agree with holding these banks accountable for some of the things they did wrong during this whole financial crisis. Another part of the controversy is what is this going to do to home values? Is it going to lower home prices by a huge amount because basically not much will be owed on them anymore? I say no because home prices are all ready low and a lot is owed on them. I believe that it could actually raise home prices by giving people money to actually go out and buy a house instead of paying their very high rent compared to the lower mortgage payments on homes. So, e will see what it does with home prices but I believe it could stimulate some buying in the market. So that's the controversy surrounding these plans but the reason B of A and other banks are having to do this, because let's face it they are not doing because they want to is because of the whole robo signing deal. Where they were taking advantage of people. So, if you qualify for this program take advantage of it.

Bird Houses / 20071230.10D.46705 / SML, a photo by See-ming Lee 李思明 SML on Flickr.