| Many homeowners today are facing the possibility of | | | | Programs like this were previously unavailable to |
| foreclosure and are unsure where to turn for help. | | | | homeowners. This program actually reduces mortgage |
| Changes in the housing market and the economy have | | | | principal and takes the balance on the loan down to |
| lead to unexpected changes for homeowners. There | | | | the home's actual value. This is tremendously helpful to |
| is hope. Banks are now offering mortgage principal | | | | homeowners that have found that they owe more on |
| reduction for those in need of assistance. Bank of | | | | their home than it is worth. |
| America or BofA is one of the banks that offer this | | | | BofA actually set aside the portion of the balance that |
| assistance today. | | | | exceeds the value of the home and forgives this |
| Bank of America was seeking a new approach to | | | | amount if the homeowner makes all payments on time |
| helping homeowners who were heading toward | | | | and does not default again. Homeowners are allowed |
| foreclosure. This led to the design and implementation | | | | to reduce the mortgage principal by up to 30%. |
| of the new program that aims to help homeowners in | | | | This program is a lifesaver for homeowners who are |
| default. This new approach is expected to have a | | | | in default, but want to keep their homes. This program |
| positive impact. | | | | gives these homeowners a second chance. Second |
| BofA hopes that this new program will set an example | | | | chances are something quite valuable in today's |
| for other lenders. Many homeowners are in default | | | | economy. If you have a mortgage through Bank of |
| and cannot change the terms of their current | | | | America and feel that you need a mortgage principal |
| mortgage. This leads to numerous defaults and | | | | reduction, give them a call today. A representative will |
| foreclosures each year. | | | | be able to answer all of your questions. |