Bank of America’s Mortgage Forgiveness Initiative
Mortgage rates continue to fall, but that doesn’t help the millions of Americans currently trapped under mountains of mortgage payments they can no longer afford to pay. With foreclosures becoming the norm in many cities across the country, Bank of America recently joined in on a settlement among four other major banks and the federal government to begin providing some mortgage relief for 200,000 qualified homeowners.
While the mortgage forgiveness program wouldn’t completely eradicate the mortgage payments of the people who qualify for it, it can certainly help out by slashing monthly mortgage payments by up to 35%. This week, Bank of American began mailing out letters to hundreds of thousands of potentials candidates for mortgage forgiveness, and they will continue to mail letters to more and more candidates as the year goes on.
The first batch of letters being mailed out will contain some information about the settlement and about the mortgage forgiveness program, as well as some financial information explaining the eligibility requirements for potential candidates and the financial benefits of the program. The first batch of letters will also include a place where potential candidates can provide some financial information about themselves to send back if they are interested in applying for the program and beginning the process.
In order to qualify for the mortgage forgiveness, you must owe more on your mortgage than the property itself is worth. You also need to have been behind on your mortgage payments by at least 60 days on January 31 of this year. Finally, your mortgage loan must be owned and serviced by the Bank of America, or another investor that has given permission to the Bank of America to make modifications on your mortgage.