Bank of America – possible principal reductions for up to 200,000 borrowers

According to a recent CNN Money article, up to 200,000 borrowers with Bank of America mortgages could obtain a reduction in the amount of principal that they owe on their mortgage, thanks to a recent settlement between the five major mortgage servicers, the federal government, and the attorneys general of 49 states and District of Columbia. According to the article, the possibility of obtaining a principal reduction  ”only applies to the mortgages [Bank of America] owns and some that [Bank of America] services for private investors. Loans backed by government-controlled agencies like Fannie and Freddie or insured by the Federal Housing Administration are not eligible for the program.” The article goes onto say that Bank of America has already identified the borrowers who may qualify and plans on reaching out to them as soon as the settlement is approved by the court. This could be great news if you are one of the lucky 200,000 borrowers.

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