Bank of America will reduce the amount owed on underwater mortgages up to $100,000 for up to 200,000 homeowners who qualify. Only mortgages that are owned by Bank of America will qualify. Those that are owned by government entities Fannie Mae and Freddie Mac, or backed by the Federal Housing Administration will not be eligible. Generally, loans that qualify will be over $417,000 at the time of origination.
Why is Bank of America being so generous? This move will help the bank reduce penalties it owes to the government’s Housing & Urban Development Agency by about $850 million. The penalties were part of a broader $25 billion settlement announced February 9, 2012 by federal and state attorneys general and the largest mortgage lenders in the country to resolve investigations into abusive home lending and fraudulent foreclosure practices.
If you think you may qualify for this mortgage relief, contact Bank of America as soon as possible.