Bank of America announced recently that it will be launching a new mortgage modification program as part of the DOJ settlement established earlier this year. This mortgage modification has big promises, including forgiveness of up to $150,000 off the principal of your mortgage balance.
Sound too good to be true? Here is a brief synopsis of what you need to know about this new settlement:
1. Not every homeowner will qualify. Specifically Bank of America is looking at homeowners that were behind on their mortgage on January 31, at least 60 days past due and whose homes are worth less than they owe. If you meet these requirements it just means you are eligible, it does not mean you WILL be approved.
2. There is the possibility of principal reduction in this type of modification but that does not mean that Bank of America is going to reduce the principal on your loan, it just means it is possible that Bank of America will do so.
3. The qualification process will be much the same as your mortgage modification application was before. You will still need to monitor the submission of paperwork and you will still likely have to resubmit and wait extended periods of time for a decision.
Still interested? Great. Give our office a call at 732-302-9600 or submit our contact us form and will will be happy to assist you in applying for your mortgage modification.
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