Bank of America announced on May 8, 2012 that they started mailing letters to some 200,000 home owners who are underwater with their mortgage. The goal is "retention" through helping eligible struggling home owners with principal balance reduction on their mortgages.
This move is part of the settlement reached between the Banks and the Federal Government and accepted by 49 State Attorneys.
To be eligible, the home owner must :
- Owes more on the mortgage than the property is worth today.
- Was at least 60 days behind on payments on January 31, 2012.
- Has a contractual monthly payment for principal, interest, property taxes, hazard insurance and any applicable homeowner association fees totaling more than 25 percent of gross household income.
- Has a loan that is owned and serviced by Bank of America, or serviced for another investor that has given the bank delegated authority to do such modifications.
For all the details read BOA's Press Release