Pretty soon, there may be good news for Bank of America mortgage holders who have fallen behind with home loan payments. The bank’s pending plan is to: (1) forgive payments for up to nine months, or (2) defer payments. This would apply to borrowers who lost their jobs due to the recession.
According to Bank of America, if the borrower finds new employment within the nine month period, the mortgage would be eligible for a modification either through a special Bank of America program or under the Home Affordable Modification Program (HAMP).
If the borrower cannot find other employment during that nine month period, the bank would arrange a deed-in-lieu of foreclosure which would be agreed to in the beginning as a condition of the original payment deferral or forgiveness. Bank of America would offer a $2,000 incentive to the borrower for the deed in lieu.
Specific program guidelines and requirements have not been finalized. But regardless, this is one program that should help a tremendous number of people as long as everyone clearly understand how it will work.
Stay alert to news blurbs about program rollout or contact Bank of America.
Until my next post . . .
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