DOJ and Bank of America Settlement for Underwater Borrowers

By
Real Estate Agent with Linda Craft & Team, REALTORS® NC 247573

DOJ

The big news coming from the DOJ and Bank of America (and other banks) is a new global settlement for underwater borrowers. This is great news for those who are current on their payments but are underwater on their loans and for current borrowers involved in the short sale process.


Under the new terms BofA will:

  • implement a new program to modify underwater loans by reducing the principal owed
  • Will lower rates (which will reduce payments) for eliglible borrowers who are current on their mortgages
  • Wil continue to assist those seeking a short sale or deed in lieu of foreclosure

In my opinion this looks to be like an awesome program for borrowers who want to keep their homes. Indeed it makes sense for a lender to keep a paying customer than going through the hassle of foreclosing on a home or being hammered by short sales. In the end lenders are realizing that it costs less to keep a borrower in a home than risking a strategic default.

For more information contact:
Short Sale Customer Care
READ MORE ON THE SETTLEMENT 

1.866.880.1232
8 a.m. – 10 p.m. Eastern, Monday – Friday
9 a.m. – 5:30 p.m. Eastern, Saturday

Posted by

Nogui Aramburo
Real Estate Broker | Manager
Linda Craft & Team, REALTORS
www.lindacraft.com
(919) 771 3609

Comments (2)

Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Keller Williams Land Luxury Division Specialist

I will believe it when I see it.  how many times have we all heard they are willing to modify only to NEVER see a single person ever get approved for help.

Jun 14, 2012 11:33 AM
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Noqui, I agree with you that this looks like a great program. I'm just not sure if they are actually following through with it.

Sep 05, 2012 05:40 AM