There will be thousands of Nevada homeowners that may be able to benefit from the Bank of America settlement. Bank of America will modify several troubled mortgages to help struggling homeowners avoid loosing their homes.
The settlement is $8.4 billion, which will touch almost 400,000 homeowners across the nation who obtained mortgages through Countrywide Financial. Countrywide was bought-out by Bank of America in July. This new home retention program will help borrowers who financed their homes through pay option adjustable rate mortgages or subprime loans from Countrywide before January 1, 2008.
Some of the assistance will include reductions in loan principals and interest rates for eligible borrowers. Those who foreclose because they are not qualified for this program, will receive financial aid to help them move. The Nevada Attorney General's office has been working very closely with Countrywide and other states to help homeowners keep their homes.
Countrywide says the settlement could help over 11,000 Nevada borrowers. Nevada represents $2.6 billion in unpaid mortgages. Of the 11,000 borrowers, around 10,300 will be eligible for loan modifications.
Some modifications include:
~ Almost $2.2 million in prepayment penalties that will be waived for the state.
~ $219 million in mortgage reductions or the state of Nevada, which includes $70 million in principal write-downs.
~ Almost $2.3 million in delinquent fees that will be waived for the state..
For the 800 borrowers that have been foreclosed on already, they may be eligible for restitution. Restitution includes a cash for keys program, which the state has set aside $4.8 million for this purpose.
Many are confident that the program will provide necessary solutions to assist any borrowers in trouble, and set them back on track to stable home ownership.
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