Bank of America has unveiled a new program that will forgive up to 30% of principal for distressed borrowers.
“Bank of America Corp. has begun notifying some of its most troubled mortgage customers that it will reduce the amount they owe by as much as 30% if they make lowered payments on time over a period of years.”
Unfortunately, the article implies that this program is yet another good deed on behalf of BofA. Notably, BofA says that the program is being offered because homeowners have not been responsive enough with regard to loan modifications.
“Schakett described the program, involving offers to erase $3 billion in principal owed, as a last-ditch effort to help borrowers who otherwise would not respond to offers to modify their loans.”
It is quite ironic for BofA to accuse the American homeowners of unresponsiveness, when the majority of BofA clients walking into our office complain that BofA has lost the homeowners documentation repeatedly for a year, prompting a foreclosure sale that could have been avoided.
Read the entire article here: http://latimesblogs.latimes.com/money_co/2010/06/bank-america-mortgages-option-arm.html