Bank of America looks to offer help to homeowners

Today, as I was at a Bank of America short sale forum, they were busy announcing a new program aimed to help close to 200,000 homeowners.  These targeted homeowners are those who likely had what were originally Countrywide loans. Letters will go out to these borrowers "at risk," beginning this week and will continue in waves through the third quarter of the year.

The aim of this offer of help is principal reduction and permanent modifications and is a result of the recent government settlement with the large national servicers like Bank of America.

Borrowers identified for this program will have several things in common, including.

• Being "upside-down" i.e. owing more on their mortgage than their home is currently worth in today's market.
• At least 60 days late in their payments as of January 31, 2012.
• Monthly payment including principal, taxes, interest, insurance and any HOA fees should be over 25% of your gross household income.
• The loan is owned by Bank of America or an investor who has given B of A delegated authority to conduct such modifications.
• NOT Fannie Mae, Freddie Mac, FHA or VA. 

Bank of America has estimated the average monthly savings for those who qualify for this program could be up to 30%.  This certainly could be great news for many homeowners! If you are a B of A customer, wondering if you'll qualify for this, or another program, call them at 1-877-488-7814.

From the Bank of America press release:

"Building on home retention and payment assistance programs already in place, we are meeting our obligation to deliver this additional relief to our customers following the completion of the recent global mortgage settlement," said Ron Sturzenegger, Legacy Asset Servicing executive. "To the extent principal reduction and other modification tools help us turn mortgages headed for possible foreclosure into long-term performing loans, it will be positive for homeowners, mortgage investors and communities."

How will you know if you have a Fannie Mae or Freddie Mac loan?  You can look up your loan on their databases to check:

Fannie Mae Loan Lookup

Freddie Mac Loan Lookup

If you don't qualify for Bank of America's program, you can still look at some options at the following links:

Making Home Affordable - learn your options

Keep Your Home California - options for home retention

Today at the short sale forum, Bank of America reps introduced us to another website they've set up aimed to help homeowners transitioning out of their homes by short sale or deed in lieu. Unfortunately, modifications, principle reductions and other help just isn't available for everyone, or circumstances may just not allow a home retention option.  Check out their home transition guide.

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Catherine Myers, Broker Assoc
DRE Lic 01337828
Windermere Bay Area Properties
925-683-2125

Serving the real estate needs of Walnut Creek, Concord, Clayton, Pleasant Hill and Martinez home owners, and home buyers. 

Check out her Contra Costa | Concord | Clayton Real Estate website for more information including upcoming posts on other servicers and their loan modification, short sale and foreclosure preventation resources (i.e. Chase, CitiMortgage, Wells Fargo, etc)