Borrowers now with bad credit because they are in default with Bank of America can now hopefully get some attention.  Bank of America is trying to win browny points with the public since they could be the winners of the Customer No Service Award in the USA. 

If you owe $100,000 and your house is worth 60,000 if eligible they would write down an amount needed to get your mortgage payment to a level you can afford.   Most banks are not writing down the amount needed to get a payment that is affordable.  Obama administration has not forced the issue until now because modifications are not happening as fast as they had anticipated. 

Kevin Stein, Associate director of the California Reinvestment Coalition is leery of their new announcement thinking it might just be a public relations slant.

There are some very key details to be eligible for this modification plan.  Loans had to originate with CountryWide.  The loan balance has to be at least 120% of the current home value.   Only  subprime, “option adjustable-rate” mortgages with large increases at a later date; rates that are fixed for two years then adjust annually. 

If you do not fall into these categories please still call Bank of America and attempt to modify your mortgage if you want to stay in the home.  It is a process that takes months and its repetitive work but it may be worth it for you.

I was at a home this weekend to look over the whole situation that was mortgaged with Bank of America.  They fit all of these categories except that they did not originate with Countrywide.  They have no interest in staying in Ct and keeping the home so it will be a short sale if they put it on the market.  There other option for them was to call Section 8 Rental Assistance in town to see what the State would pay for a rent with some improvements needed. If it covers the mortgage, taxes and insurance they might go that route to hopefully within a few years  regain some equity to sell.

Don’t give up!

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