Tuesday, May 8, 2012

An Envelope You Want to Open

If your current mortgage is with Bank of America keep your eye on your mailbox. It sounds too good to be true but Bank of America just announced they will be mailing mortgage principal reduction letters to 200,000 customers.

The Bank of America rep warns that if you receive on of these letters and throw it away you won't be eligible for the program. Only borrowers receiving the letters are eligible for the program, but even after receiving the letter you still have to prove you qualify.

To be eligible you must:
-Be 90 days late on your mortgage as of January 31, 2012 (so don't stop paying your mortgage hoping to cash in on this!)
-Owe more on the home than it is worth
-Have your mortgage with, or serviced by Bank of America

To qualify you must:
-Answer the letter with full documentation of income
-Borrowers current monthly payment must be more than 25% of their gross income and they must show that they cannot afford that payment. If you can afford your monthly payment and are choosing not to pay you will not get this modification.

If you meet all the requirements BofA will bring your monthly mortgage payment down to 25% of your gross income. They will do this by reducing the principal owed on the mortgage. That is an amazing opportunity so if you think you are eligible for the program keep your eye on your mailbox!

This program is part of the settlement reached this year (read more about it here) over fraudulent foreclosure document processing. Other lenders were also involved in the settlement - check here for updates on those lender's programs.

1 comment:

  1. This is great information to get out to people. If I ever decide to move, you will definitely be my agent!