Bank of America has agreed to provide mortgage relief, including partial loan forgiveness, to more than 200,000 borrowers.
The agreement is part of the $25 billion national mortgage settlement with five of the nation's biggest lenders that was announced last month and is expected to be filed today in federal court.
A spokesman for the bank says the lender's program goes beyond the settlement's requirements.
The program applies only to mortgages owned by Bank of America or certain Countrywide-originated mortgage loans that are owned by private investors and serviced by the bank, says spokesman Dan Frahm.
"We will actively contact more than 200,000 borrowers potentially eligible for the program, defer foreclosure sales for those borrowers until solicitation is complete and may forgive principal down to the current value of the eligible borrower’s home," Frahm says.
Here are the basic requirements to participate in the program:
- Borrowers must have been 60 or more days delinquent on Jan. 31, 2012.
- Monthly mortgage payments must be more than 25 percent of the borrower's monthly before-tax income.
- The house must be worth less than the balance on the mortgage.
- The first-lien mortgage loan needs to be owned by Bank of America or serviced for others who have given the bank permission to reduce principal if necessary on troubled loans.
Loans owned, insured or guaranteed by Fannie Mae, Freddie Mac, the Federal Housing Administration and Veterans Affairs loans are not eligible for the program.
Bank of America customers seeking more information on the program may call (877) 488-7814.
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