BOA is sending out letters to borrowers forgiving the 2nd mortgage. However, one of my sellers received this forgiveness letter on a HELOC. I am pasting the announcement from BOA saying these were mailed out starting July 2012, but I am told 150,000 were mailed this week and I have had two short sale clients receive them in the last week.
As part of Bank of America’s ongoing efforts to help customers in need of mortgage assistance, this company is in the process of mailing approximately 150,000 letters to pre-qualified homeowners offering automatic extinguishment of their second lien mortgages. The intention of the program is to place homeowners in an improved financial situation by reducing their monthly debt obligations and, potentially, help them create equity in their property.
The full forgiveness of second lien balances on eligible loans is being extended under Bank of America’s participation in the 2012 national mortgage settlement among the five largest mortgage servicers, 49 state attorneys general and the federal government.
Letters that began mailing in July 2012 and continue through the end of this year inform predetermined eligible homeowners that the full balance of their Bank of America-owned and -serviced second lien mortgage will be forgiven and the bank’s lien on the collateral property will be released free and clear, unless the customer opts out of this relief offer within 30 days of receiving the letter.
Short Sale Specialist - Helping people find a way out of foreclosure