Thursday, August 4, 2011

Distressed BofA Homeowners in Calif. Now Have Chance of Principal Reduction


San Diego Union-Tribune

Bank of America has joined the Keep Your Home California principal-reduction program, making it the largest loan servicer involved in lowering loan balances for those with economic hardships.

Keep Your Home California is a program offered through the California Housing Finance Agency to help struggling homeowners avoid foreclosure.

Bank of America, which services more than two million home loans in California, joins others servicers involved in the program, including: California Dept. of Veterans Affairs, the California Housing Finance Agency, Community Trust/Self Help, GMAC, Guild Mortgage Company, and Vericrest Financial. Agency officials hope the list will continue to grow, and that the program will continue to gain momentum.

Under the program, qualified homeowners may be eligible for up to $50,000 in assistance. The program requires the mortgage investor to match dollar-for-dollar the amount provided by the program.

Bank of America borrowers who do not qualify for the principal-reduction program will be evaluated by bank representatives to explore other options, including a loan modification.

To be eligible for the program, applicants must: Own and occupy their homes as their primary residence; not exceed $729,750 in current unpaid principal balances on first mortgages; meet low- and moderate-income limits; complete and sign a hardship affidavit to document reasons for hardships; have mortgage loans that are delinquent or “in imminent default;” and have enough income to pay modified mortgage payments according to guidelines from servicers participating in the programs.

For more information about Keep Your Home California, visit keepyourhomecalifornia.org or call (888) 954-5337(KEEP).

Read the full story
http://www.signonsandiego.com/news/2011/jul/28/distressed-bofa-borrowers-calif-now-havechance-
pr/

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