The Florida Association of Realtors today reported that the Bank of America has agreed to modify tens of thousands of loans to keep people in 11 states from losing their homes, the Illinois Attorney General’s office said on the 7th of October.
Borrowers stuck with mortgages that they can’t afford could see interest rates reduced or have the loan principal cut. Some may qualify for only having to pay interest for a decade and others who can’t afford their homes will get help moving to a new home.
11 States have joined in this suit and if all 50 States join the settlement could provide $8.7 billion in relief for 400,000 borrowers, it is reported.
The mortgage aid includes revising customer’s payments so they don’t exceed 34% of income. Other options include reducing interest rates and adjusting principal so that borrowers don’t wind up actually losing equity under some payment plans, it was reported.
Tags: Bank of America Lawsuit Settlement, Countrywide Lawsuit Settlement, National Real Estate News
