6:41 am March 25, 2010, by Henry Unger
Do you think other banks should adopt Bank of America’s new plan to help homeowners avoid foreclosure.
Bank of America, the largest mortgage servicer in the country, said Wednesday it will forgive up to 30 percent of some customers’ total mortgage balances, Associated Press reports. The homeowners must have missed at least two months of mortgage payments and owe at least 20 percent more than their home is currently worth.
Although the motivation for Bank of America’s announcement was to resolve legal problems, it has the potential of putting pressure on other banks to also forgive principal on loans that are in danger of failing, AP writes.
Up until now, nearly all mortgage relief programs have avoided forgiving the principal owed.
Do you think this new approach will work? Should it be expanded?
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