Bank of America has launched a home retention program that will systematically modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 Countrywide Financial Corp. customers nationwide.
According to Bank of America, the program was developed together with state attorneys general and is designed to achieve affordable and sustainable mortgage payments for borrowers who financed their homes with subprime loans or pay option adjustable-rate mortgages serviced by Countrywide and originated prior to December 31, 2007.
Foreclosure sales will not be initiated or advanced for borrowers likely to qualify for the program until Countrywide has made an affirmative decision on the borrower's eligibility. Some loan modifications, however, will be subject to compliance with servicing contracts, and some will require investor approval.
The program is part of agreements to resolve outstanding claims against Countrywide by several states.
Source: Bank Of America
