This week, some Bank of America mortgage customers will receive letters in the mail describing the process by which they can attempt to reduce the principal on their home loans. The letters are the result of last week's notice of settlement, whereby Bank of America would avoid more severe penalties for its role in the foreclosure fallout.
About 200,000 Bank of America mortgage customers, including some that originated as Countrywide loans, would be eligible. Reports indicate that qualifying customers could have the principal of their loan lowered by as much as $100,000.
There are, obviously, several requirements, including being delinquent on loan payments for at least 60 days as of Jan. 31 and having the loan serviced by Bank of America or private investors, not Fannie, Freddie, FHA or VA.
The process encourages customers to complete the process within a year. Additionally, this does not include the individual state settlements, including the one in Illinois earlier this year.
To find out if your loan is eligible or to see more details about the program, visit Bank of America's National Homeowners Retention Program page.