Like the super-slow fat cat that it is, Bank of America is finally easing its rump into a mortgage principal writedown plan, as part of the $25 billion settlement between it, other large mortgage servicers and the government. It announced today that it will start to contact homeowners who may be eligible for the program beginning this week.
According to the Chicago Tribune, more than 200,000 bank customers will receive letters this week regarding their potential eligibility, but most of the letters will be sent in the third quarter of this year.
Those who participate in the program will end up saving around 30% on their monthly payments, predicts BofA. It made some principal reduction offers already in March.
The plan doesn’t include homeowners whose mortgages are held by Fannie Mae, Freddie Mac, the Federal Housing Administration or the Veterans Administration but are serviced by Bank of America.
BofA begins mortgage write-down effort under robo-signing deal [Chicago Tribune]