B of A Offers Principal Reductions by Mail - Receives Low Response

By
Real Estate Agent with Alain Pinel Realtors

A CNBC article reported that Bank of America (B of A) sent principle reduction offers by mail and was surprised that they have received such a low response.

I wasn't the least bit suprised. As a Realtor who handles short-sales, I know what happens when homeowners' become late on their mortgage payments.  Lenders start the collection calls and, at the same time,  inundate the homeowners' mailbox with past-due notices that clearly display the company logo on the envelope.  Over time, financially distressed homeowners who don't have the funds to make the payments - regardless of the number of notices they receive - simply stop opening the envelopes.

Unless B of A clearly displayed their Principal Reduction Offer on the outside of the envelopes, it is no suprise that the response has been low.  The majority of the mailed Principal Reduction Offers are likely unopened.

Contra Costa homeowners, if you are behind on your B of A mortgage payments, it's time to again start opening your B of A correspondence.  You might be one of the 300,000 receiving a loan modification offer with a principal reduction.

 

Comments (3)

David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct
Well finally the banks have figured it out that better to keep an existing family in their home... A piece of pie is better than no pie.
Jul 21, 2012 12:24 AM
Wendy Cutrufelli
Alain Pinel Realtors - Walnut Creek, CA
Contra Costa Realtor

I think they finally "figured it out" due to the lawsuit that was recently settled requiring this action. :)

Jul 21, 2012 12:30 AM
David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

It's unfortunate that these letters/program are not getting a better response. The program is likely just delaying the inevitable foreclosures to come. Regards Dave

Jul 21, 2012 03:15 AM