BOA is eliminating the full unpaid principal balance on some second mortgages. And possibly your need to short sale your home!
Bank of America recently announced that it will be forgiving 2nd mortgages, for some homeowners, “under Bank of America’s participation in the 2012 national mortgage settlement.” We will be writing more about the 25 billion dollar National Mortgage Settlement soon, but, for now, here is part of BOA’s recent press release:
As part of Bank of America’s ongoing efforts to help customers in need of mortgage assistance, this company is in the process of mailing approximately 150,000 letters to pre-qualified homeowners offering automatic extinguishment of their second lien mortgages. The intention of the program is to place homeowners in an improved financial situation by reducing their monthly debt obligations and, potentially, help them create equity in their property.
The full forgiveness of second lien balances on eligible loans is being extended under Bank of America’s participation in the 2012 national mortgage settlement among the five largest mortgage servicers, 49 state attorneys general and the federal government.
Letters that began mailing in July 2012 and continue through the end of this year inform predetermined eligible homeowners that the full balance of their Bank of America-owned and -serviced second lien mortgage will be forgiven and the bank’s lien on the collateral property will be released free and clear, unless the customer opts out of this relief offer within 30 days of receiving the letter.
What we think: This could result in instant equity for distressed homeowners! Therefore, you should determine if you are eligible before you short sale your home! Make sure you are working with a real estate agent who is aware of the latest news and programs concerning distressed homeowners and real estate in general.
If you have any questions about this post or others, please call Bayview Estates Realty at (516) 777-0146. We put people over profit!
Bayview Estates Realty specializes in assisting distressed NY homeowners in Nassau county, Suffolk county, Queens, and Brooklyn with the short sale of their home. We also assist conventional sellers, buyers and renters!
This is not Tax or Legal advice!
Read the full Press Release here.