As part of the National Mortgage Settlement, Bank of America announced on Friday that it is in the process of mailing approximately 150,000 letters to their pre-qualified homeowners offering to cancel their second mortgage. The intention of Bank of America is to help improve the financial position of the homeowner by decreasing their monthly payment obligations and potentially creating an equity position in the property. Bank of America began mailing these notices to their qualified borrowers in July and will continue through December 2012. The letters will notify eligible homeowners that the full balance of the second lien mortgage will be forgiven and the lien removed and cleared. The borrower does have the option to call the bank to decline the offer within 30 days of receiving the letter. Hmm... isn't that interesting.
What is the criteria to have the second mortgage forgiven?
Downsides for the borrower:
Bank of America will continue to help customers who are in need of assistance with their mortgage. Contact Bank Of America's customer call center or by visiting them on the web to find out about other available programs.
Century 21 Amber