The bank announced yesterday that the program will affect borrowers who got subprime and option adjustable-rate mortgages through Countrywide before Jan. 1, 2009. The bank will eventually expand the program to include two-year hybrid adjustable-rate mortgages, according to B of A’s Web site. Countrywide is now owned by B of A.
The bank could lower the principal amount owed by some homeowners as much as 30 percent, according to the Globe.
This particular program will help about 45,000 people who, according to The Wall Street Journal, have a loan balance that is at least 120% of the estimated home value, are at least 60 days overdue and who can prove that they can’t make payments due to financial hardship.
According to Zillow’s Real Estate Market Reports, about one in five (21%) of single-family homeowners with mortgages were in negative equity at the end of 2009 — that’s upwards of 12 million homeowners.
B of A is the biggest mortgage servicer out there, according to the Journal, and the hope is this program will pave the way for others.
By: Katie Curnutte, Zillow PR Manager | March 25, 2010
Rock on! This is what I was talking about with you earlier today. Good job getting this out there!
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