Key Points of the Bank of America Announces Loan Balance Reduction Program:
- The loan reduction program is invitation only. That means that you can not ask for it, they will tell you if you are invited to get relief.
- If you got your loan from Bank of America, don’t expect any help. This program is aimed at the Countrywide borrowers who most likely were written a mortgage that regulators are looking at sceptically.
- The write down amount caps out at 30 percent.
- You have to remain current over a 5 year period to get the benefit of the Bank of America loan balance relief program.
- This program is only for those who are in immediate fear of losing their house and can not afford their payments.
I do not think this will fix the problem. My area in Illinois has a continue influx of REO's still coming on the market. THe buyers are not in any hurry to buy. I also am seeing so many people not getting financing. This is still a very bad market for Real Estate and prices are still dropping.
How many agents are seeing people walk away from property. IF the value has dropped to below purchase price and the REO's are keeping the condo value dropping when will it stop?
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