Bank of America will reduce the principal of home loans held by members of the military who have fallen behind on payments, whether they're on active duty or leaving it, the bank said Thursday.
Under a new program, the bank will reduce interest rates on mortgage loans for all active service military to 4 percent, a lower rate than that required by the Service Members Civil Relief Act, Bank of America said in a statement. As military members become inactive, the bank will work with them to reduce payments. One possibility would be to reduce the principal of the loan to the property's current market value. House prices slid 40 percent in San Diego County and 50 percent in Riverside County from the 2005 peak, and many service members have loans that far exceed the value of their property.
Not every service member who receives mortgage bills from Bank of America can take advantage of the program. While BofA is the largest servicer of loans in the country, only the loans it owns ---- about 20 percent its service portfolio ---- are eligible for the program.
"We're encouraging our investors to allow us to do this on military customers," said bank spokesman Rick Simon.
The bank is encouraging those with questions about the program to call its dedicated customer service unit at 888-325-5357.
The program starts April 1.
Under a new program, the bank will reduce interest rates on mortgage loans for all active service military to 4 percent, a lower rate than that required by the Service Members Civil Relief Act, Bank of America said in a statement. As military members become inactive, the bank will work with them to reduce payments. One possibility would be to reduce the principal of the loan to the property's current market value. House prices slid 40 percent in San Diego County and 50 percent in Riverside County from the 2005 peak, and many service members have loans that far exceed the value of their property.
Not every service member who receives mortgage bills from Bank of America can take advantage of the program. While BofA is the largest servicer of loans in the country, only the loans it owns ---- about 20 percent its service portfolio ---- are eligible for the program.
"We're encouraging our investors to allow us to do this on military customers," said bank spokesman Rick Simon.
The bank is encouraging those with questions about the program to call its dedicated customer service unit at 888-325-5357.
The program starts April 1.
This is great information! Thanks for keeping us informed.
ReplyDeleteIt's great to finally hear some good news for a change. With the House constantly fighting to destroy any mortgage aid programs and the horror stories about the backhanded tactics that lenders will resort to to collect from people, this is something comforting to hear for a change.
ReplyDelete| Avoid Foreclosure NJ |
Wow it's an great news and it's really an best opportunity for the owners to save their houses so never miss out such opportunity..
ReplyDeleteGreat post concerning banks and the military.
ReplyDeletesomething they truly deserve..thats a good move
ReplyDeleteI love your writing style and how you write articles, really perfect. Do you consider writing for other blogs as a guest?
ReplyDeleteThis is good news. I invest in mortgage assets myself and love it. Thanks for sharing this news.
ReplyDeleteTo reduce the principal on the loan to the value of the house is a huge break. Anybody who has been underwater on a house understands how great this deal is. This is especially relevant to New York, where the decline in home prices has been very significant.
ReplyDeleteI'm so pleased that you have shared some interesting review on this one. Glad to have gone over on this informative post.
ReplyDeleteThis was absolutely the best article that I have read regarding this issue. Kudos to the owner of this blog for writing such masterpiece!
ReplyDeleteIt's great content, Thanks for posting such a nice post.
ReplyDeleteIt's good that they open up SOME money, wherein the hay is the rest of the tarp money? Auto Loan After Bankruptcy etc.
ReplyDeleteThank you for sharing some great and valuable information and this is also the great opportunity for the house owners to save there real estate properties...
ReplyDeleteGreat work
Congrats for coming up with some great information! and i really admire it!
ReplyDeleteIt's great to finally hear some good news for a change.This is something comforting to hear for a change.
ReplyDeleteTimeshare Disposal Group is a Transfer Company that provides a Guaranteed Exit Solution for Timeshare owners that want to get rid of their Timeshare and forever be free of rising maintenance fees.Our promise and Guarantee is that we will spend one-on-one time with you, assess your situation, and we will explain exactly how we can help you get out of your Timeshare! Our method and service is Fast, Effective,Hassle-Free, and best of all 100% Guaranteed!
http://timesharedisposalgroup.com/
Bottom's up to those military members. Regardless of there membership they still gain a decrease in such mortgage loan interest rate. An actual good news for them, how about the non-military members? Is there any available benefit program to them? By the way, good thing you have post this news as an additional information to us Kimberly!
ReplyDeleteRegards from,
Philippine Real Estate
A very good move on behalf of the banks.
ReplyDeleteGreat write up!Thanks for providing us with valuable information.
ReplyDeleteI really hope they will reduce the principal balance as well as the interest rate. It's about time BofA did something good for the housing industry, and for servicemen.
ReplyDeleteThis is great to hear. With all the negative press surrounding Bank of America it is good to hear they are finally doing the right thing for members of the Military.
ReplyDeleteThis is great for Military people. I've been told that elderly folks have some great protection. If you have a family member who is getting up there in years, look into some of the protection for them. I didn't read the rules to see if I can post a site or not but if you're interested, you can find many resources by searching for elderly foreclosure protection.
ReplyDeleteThis is good news. I invest in mortgage assets myself and love it. Thanks for sharing this news.
ReplyDeleteThis is great information! Thanks for keeping us informed.............so Please log on our website for Jaipur Property
ReplyDeleteIt's great to finally hear some good news for a change.This is something comforting to hear for a change.
ReplyDeleteIt's great to finally hear some good news for a change.This is something comforting to hear for a change.
ReplyDeleteAmazing how simple it can be to communicate with people and have them understand a certain topic, you made my day.
ReplyDeleteIt is sad to know that not every service member who receives mortgage bills from Bank of America can take advantage of the program but this is such a big help for many a member of military.
ReplyDeleteWith the decline in the economy lending a hand to our Military Servicemen/women captures the spirit we had post WW-2. We need more of that spirit!!
ReplyDeleteI love each opportunity I have to show these good folks some Warwick NY Real Estate.