Bank of America Claims to be Offering Mortgage Principal Reductions. Have You Heard of ANY Success Stories?
Bank of America, the nation’s largest mortgage lender, on Wednesday announced a program to offer homeowners who owe significantly more than their homes are worth the opportunity to have their loan balances reduced.
I’ve done some personal research on this program and from what I heard on the news today it’s a very interesting. If a homeowner owes more than 120% of the value of their home but wants to keep it, B of A essentially forgives interest temporarily. (Another way to look at it is they set the interest rate at -0-.)
Then they set a payment they think the homeowner can afford, and 100% of the payment goes to principal reduction until…
The balance of the loan drops down to the then-current value of the home. Then interest kicks in again, presumably at the original terms, although I don’t know that for sure.
Note that B of A doesn’t give up any principal, but rather gives up interest — but only for a fairly short time.
Here we are wrapping up Friday 3/25/2010. Mortgage rates are still extremely low. Some of the niche programs for first time buyers and tax credits are still available.
If you have financing questions, or want to learn more about what we are doing as Real Estate Investors? Or if you are looking for new income or lending sources… Don’t hesitate to get in touch with me anytime! Right now we have access to over 300 non traditional lenders looking to give you money for your real estate deal.
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Until Next time Here is to your success! Jason Wheeler 925-285-2172