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Bank of America To Modify 630,000 Loans in 2009 To Avoid Foreclosures

Bank_of_americaBank of America is planning on proactively modifying 630,000 loans in the coming year.

Did you hear that?

A bank is going to be proactive in protecting it’s assets and providing relief at the same time. We all know the tremendous cost of foreclosure to banks. And who will do more to take care of a home than someone who has an ownership stake in it?

By being committed to keeping families in the homes instead of foreclosing Bank of America is cleaning up many of the ills that they have inherited with the Countrywide purchase.

This is welcome news and hopefully will be emulated across the banking industry.

To help homeowners avoid foreclosure, Bank of America and Countrywide modified approximately 230,000 home loans during 2008. This year the company embarked on a loan modification program projected to modify over US$100 billion in loans to help keep up to 630,000 borrowers in their homes. The centerpiece of the program is a proactive loan modification process to provide relief to eligible borrowers who are seriously delinquent or are likely to become seriously delinquent as a result of loan features, such as rate resets or payment recasts. In some instances, innovative new approaches will be employed to include automatic streamlined loan modifications across certain classes of borrowers. The program utilizes an affordability equation to qualify borrowers for loan modifications at a targeted first year mortgage debt to income ratio of 34 percent. via Press Release.

56 comments

  1. IF you are talking to BOA about a loan mod, no matter if you are 4 mo behind or over a year behind YOU WILL NOT GET IT. What you will get is the ROYAL run around. In our case we were told we got a temp mod thru the atty. That magically went away. Then we tried talking to them on the ph again thru the help of a NFP consumer group. This entailed 2 months of phone calls all to be told it was turned down the day after we submitted paperwork. ????? You need to get an atty, end of story mostly likely that will just cost you about 2-3k and buy you more time is all till you are out on the street.. BOA is an EVIL EVIL monster! We personally have more than enough income and no job loss and can pay a restructured mort. yet they would rather have this house, now devalued over $150k (worth about $100 now on a good day). We are now hiring another atty. Its unreal and if there are any lawsuits against BOA please post here, I would love to jump on a bandwagon….kinda like the take back the night marches they have in bad neighborhoods, we need to have a TAKE BACK OUR HOMES from BOA march!

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