Bank of America Begins Lowering Mortgage Principal for Some

Bank of America has announced it will begin lowering mortgage balances on certain mortgages in Charlotte. This is great news for many who find they no longer can afford their homes.

Based in Charlotte, N.C., Bank of America now services some mortgages that were originated by other lenders. These loans were considered subprime,

At this point it is estimated that approximately 45,000 of Bank of America's customers will be eligible for this program. To be eligible home owners must qualify for the mortgage loan modification program.

To qualify, home owners must have missed two months payments and owe 20 percent or more over the value of their home. Some are questioning the fairness of this program and would like to know what happens to those who have less than perfect credit but are making their house payments? Should programs that offer to reduce the financial burden be offered to everyone, or only a select few?

Those who are not in agreement with what Bank of America is offering mention some thoughts to consider. What happens to those who have struggled to make their payments but are not allowed to refinance to get lower payments when their income decreases?

Reports state that this is just part of the program that was agreed upon 18 months ago due to legal problems Bank of America caused by the loans that were considered subprime. Please use the link titled BofA Plan at the end of this article for more details.

While Citigroup Inc. and J.P. Morgan Chase & Co. would not say if they plan to offer similar programs, Wells Fargo has already reduced the principal on more than 52,000 mortgages.

It has been reported that the Treasury Department may soon be offering new programs for those who are not qualified for the programs in place now. It has been said the intention is to help everyone who needs help to reduce their mortgage principal

BofA Plan