Bank Of America To Offer Some Homeowners Extra Assistance Under Settlement
For once, now might be a good time to have a Bank of America home loan.
Under the $25 billion foreclosure settlement signed last month, Bank of America will offer to write down the loans of more than 200,000 underwater homeowners to market value, said Shaun Donovan, the Secretary of Housing and Urban Development, in an interview Monday with The Huffington Post. Other banks will also make these principal reductions, but are not required to offer as much relief, Donovan said.
Bank of America must offer the deal to any borrowers who meet a certain set of criteria: Homeowners must be underwater, which means they owe more on their loan than their home is worth. They must be delinquent by more than 60 days on their mortgage payments. And their mortgage payments must account for more than a quarter of their income.