If you have a mortgage through Bank of America, you could be getting a very important letter in the mail.
More than 200,000 bank customers may soon qualify for a principal reduction on their mortgages. This is part of that $25 billion settlement reached in the fraudulent foreclosure signing case.
Bank of America warns the letter may look too good to be true, but do not throw it out. Eligible homeowners could get as much as $150,000 knocked off the balance of their mortgages.
The first letters will begin arriving in homes this week. Most of the letters will be mailed out by the third quarter of this year. We're told customers who qualify this program will average an estimated monthly savings of 30 percent on their mortgage payments.
To be eligible for this program, a homeowner must meet certain criteria, including:
- Owing more on the mortgage than the property is worth today.
- Being at least 60 days behind on payments as of January 31, 2012.
- Must have a contractual monthly payment for principal, interest, property taxes, hazard insurance and any applicable homeowner association fees totaling more than 25 percent of gross household income.
- Must have a loan that is owned and serviced by Bank of America, or serviced for another investor that has given the bank delegated authority to do such modifications.
For further information on the settlement programs, Bank of America Home Loans customers may call 1-877-488-7814.