If you signed up for a mortgage with Countrywide in the last few years, are you up to speed with the developments announced by Bank of America as part of a legal settlement in several states?
“The Countrywide settlement is a watershed moment for loan modification programs,” said Mark Pearce, North Carolina’s Deputy Commissioner of Banks and a member of the State Foreclosure Prevention Working Group. “This is, by far, the best [program ever], even better than the FDIC program with IndyMac Bank.”
The program will cost $8.4 billion, but BoA expects that it will cost much less than foreclosing on homes en masse:
“As part of the initiative, Bank of America will cut monthly housing payments, including mortgage, property taxes and insurance, to no more than 34% of gross income. The move is expected to help keep as many as 400,000 troubled borrowers in their homes.
The program targets holders of subprime adjustable rate mortgage (ARMs), subprime fixed rate loans and option ARMs, but prime and Alt-A borrowers, who did not document their income, will be eligible as well.”
Read the whole article here but you need to go here to find Florida’s name in the list of participating states.
Recent Comments