principal reduction: Bank of America Rolls Out It's Principal Reduction Program
- 05/08/12 11:37 PM
Bank of America began mailing out more than 200,000 letters this week targeting borrowers thought to be eligible for principal-reducing modifications under terms of the recent settlement the company and four other servicers reached with the federal government and 49 state attorneys general. To qualify, the homeowner must owe more on the property than it is worth today (DUH!!) and must have been at least 60 days behind on payments on January 31, 2012. In addition, the monthly housing costs must be greater than 25%. Whether these principal reductions actually happen, and how quickly, remains to be seen. I find it … (2 comments)
principal reduction: Bank of America to Offer Principal Reductions of Over $100,000
- 03/13/12 12:00 AM
Some Bank of America borrowers may be in for principal reductions in amounts exceeding $100,000, according to the latest developments in the settlement the bank and four other large servicers made with state and federal regulators. Of the five servicers participating in the settlement, BofA is set to pay the largest portion of the total $25 billion settlement. The bank will pay $3.24 billion to the government and $8.58 billion to borrowers. Of BofA’s total, $1 billion is part of a separate settlement regarding loan origination issues for Countrywide, which BofA acquired in 2008.
While the other four servicers in … (0 comments)
principal reduction: State Attotney General Litigation May be Nearing Settlement
- 02/07/12 01:44 AM
This ongoing saga may FINALLY be coming to an end as the deadline for a settlement was extended until next Monday. 40 states have already signed on for a settlement that reportedly will have the lenders paying around $25 billion. Most of this money will go towards principal reductions. It remians to be seen what impact this will have on distressed homeowners and the "shadow" inventory. Although the proposed $17 billion in principal reductions sounds like a lot of money, there are a LOT of distressed homeowners to spread it around to. Also, it remains to be seen just how this program will be … (1 comments)
principal reduction: Government Triples Lender Incentives for HAMP Principal Reductions
- 01/28/12 12:40 AM
Distressed homeowners in Maricopa Arizona may see some relief in the form of principal reductions. But don't hold your breath! The Obama administration announced that they are making a few changes in the HAMP program. Among them is tripling the incentives they offer to investors that agree to reduce principal. In addition, they are allowing second motgages to be factored into the mortage payment to income ratio. Investors also may find some relief as rentals will also be allowed into the program. How much these changes will actually help homeowners remains to be seen due the the ineffectiveness of the program in … (3 comments)
principal reduction: Principle Reductions on Distressed Mortgages May be on the Way
- 01/19/12 01:20 AM
Relief may be on the way for distressed homeowners in Maricopa Arizona. But don't hold your breath! In a recent article posted by DSNews.com, the negotiation talks between the state attorneys general and the nation’s five largest servicers are entering their second year but may be getting close to reaching a deal. The settlement currently on the table would assist about 1 million homeowners in obtaining principal reductions and would provide “direct compensation” to others, according to Reuters. That being said, a number of Attorney Generals have "left the table" so it remains to be seen if there will be a … (1 comments)
principal reduction: Bank of America Considering Principal Reductions
- 12/30/11 02:15 AM
In this article by DSnews, Bank of America id considering writing off some of the principal on mortgages where the owner can prove a financial hardship. Apparently the settlement talks with the State Attorney Generals have stalled and they are bringing this to the table to in hopes to finally reach an agreement. Of course, they want all liability waived. Although this could be a great thing for distressed homeowners that would like to stay in their homes, it irritates me that they only way that the lenders will finally consider doing what has been common sense all along is under … (7 comments)
principal reduction: Principal Reduction to be Included in Foreclosure Settlement
- 12/15/11 03:11 AM
It appears that the lawsuit against the five major lenders' foreclosure practices may have a settlement before Christmas. The settlement is expected to be in the range of $25 billion. Also of not is that it will require principal reductions for underwater homeowners. This could be great news for homeowners looking for principal reductions. That being said, I will believe it when I see it and how the lenders will be monitored to ensure that this actually happens remains to be seen. At the very least, settling this lawsuit may be a signal that the major lenders will not be "running … (2 comments)
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Bank of America began mailing out more than 200,000 letters this week targeting borrowers thought to be eligible for principal-reducing modifications under terms of the recent settlement the company and four other servicers reached with the federal government and 49 state attorneys general. To qualify, the homeowner must owe more on the property than it is worth today (DUH!!) and must have been at least 60 days behind on payments on January 31, 2012. In addition, the monthly housing costs must be greater than 25%.
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