Bank of America Starts Shaving Customers' Mortgage Principal

Bank of America Starts Shaving Customers' Mortgage Principal

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.


Leave a comment
  • Insightful article. You suggestions are very useful to me. Thanks for sharing.

    Fragnet Networks AB

  • Hello everybody, I found here a very good post, and I have been searching this topic since a few days. This site is useful to me. Thanks to all for their nice posts. I hope will visit this page.

Leave a comment

  • ChicagoNow is full of win

    Welcome to ChicagoNow.

    Meet our bloggers,
    post comments, or
    pitch your blog idea.

  • Advertisement:
  • Fresh Chicago News

  • Subscribe to Law of the Land

    Enter your email address:

    Delivered by FeedBurner

  • Latest on ChicagoNow

  • Advertisement: