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New Bank of America Loan Mod Policy: What It Means To You

by | Mar 29, 2010 | Firm News

Bank of America (who acquired Countrywide in 2008) has instituted a new loan modification program targeted at helping borrowers who are severely underwater–with loan to value ratios of 120% or more.  The bad news: it only applies to loans secured by your principal residence.  So, again, real estate investors holding multiple investment homes will get nothing from this new program (at least on their non-owner-occupied loans).

The good news: without going into all the gory details, this new program will effectively bump principal forgiveness up from the bottom of the list to the top of the list for your B of A and Countrywide loans on your primary residence.  That is, the bank will look to “earned’ or phased-in principal forgiveness as the first step, instead of the last, toward keeping an underwater borrower out of foreclosure.

And that, my friends, is big news.

If you need assistance with your loan modification, please contact Lerman Law Partners, LLP.



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