Thursday, March 25, 2010

BofA forgives you, homeowners

Posted By on Thu, Mar 25, 2010 at 10:20 AM

Well, kinda. Read on to find out more ...

Question is, do we forgive them for their part in the banking chaos that led directly to the Great Recession? I tell you what would help, a giant check made out to the Charlotte Mecklenburg Library.

Bank of America Corp. launched a program Wednesday that will offer mortgage-principal forgiveness worth about $3 billion to 45,000 borrowers.

The program will be used with other bank and federal efforts to help struggling homeowners, such as the Home Affordable Modification Program and National Homeownership Retention Program.

Only borrowers already eligible for loan modifications will be considered for the new program. And BofA says it will contact borrowers with the offer because only a limited group of customers will be eligible. The program is intended to serve borrowers who owe at least 120 percent of their home’s value and are more than 60 days past due on mortgage payments.

Any forgiveness will depend on the borrower making on-time payments for up to five years. If the home’s value rises, the amount of principal forgiven may be reduced.

Read the rest of this Charlotte Business Journal article, by Adam O'Daniel, here.

Who wrecked the economy?

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