Bank of America Announces Mortgage Reduction for 'Underwater' Homeowners

 Bank of America recently said that it will reduce the mortgage amount of approximately 200,000 homeowners who are ‘underwater.’ This announcement came as a result of the government foreclosure settlement made with the top mortgage service providers. What Does This Mean? This means that some ‘underwater’ mortgages could end up in the ‘green’ rather than in the ‘red.’ In fact, the average reduction of debt is projected to be more than $100,000. Who Qualifies? ‘Underwater’ homeowners who have a loan serviced by Bank of America and were at least 60 days delinquent as of January 1, 2012 are eligible. The loans must be owned by Bank of America, private investors, or loans originated by Countrywide. However, if the loan is owned or backed by Fannie Mae, Freddie Mac, the Federal Housing Administration or the Department of Veteran Affairs it will not qualify. Mortgage customers of Bank of America can call 1-877-488-7814 to find out if they are eligible and for more information. We would like to hear your story if you experience success with this new Bank of America program. Please contact us at 714-540-7355 orshortsales@torellirealty.com. We are always looking to improve our services and us being aware of these successes helps us point others in the right direction.