On behalf of Law Offices of Mark M. Kratter, LLC on March 15, 2012
Readers of this blog may recall a story about a large, multi-billion-dollar settlement that the attorneys general of 49 states reached with major banks across the country in regards to improper foreclosure practices. Recently learned, though, is that Bank of America has reached a separate deal as part of the overall foreclosure settlement that could reduce its penalties while providing substantial relief to thousands of homeowners. The deal could very well provide much needed help to homeowners in Connecticut.
About 200,000 homeowners would be affected by the separate deal with Bank of America. Under the terms of the deal, these homeowners could see substantial reductions in the principal amount owed on their mortgage. In fact, the reductions could total more than $100,000, which would be a sigh of relief for many.
However, there are certain conditions that apply. First, Bank of America must either own or be the servicer for the mortgage. Second, though, the borrower must be 60 days or more overdue on a mortgage, and the remaining balance on the mortgage must exceed the home's value. There may also be other requirements that a borrower must fulfill to be eligible for the deal.
This deal will certainly be welcomed by many Connecticut residents, especially those who are worried about foreclosure. It's important to note, however, that neither the separate deal made by Bank of America nor the overall settlement affects those whose mortgages are owned by Fannie Mae and Freddie Mac. Nonetheless, for homeowners in this situation, there may be legal options available that could reduce the principal or otherwise provide debt relief.
Source: The New York Times, "Bank of America Reaches Deal on Housing," Nelson D. Schwartz, March 8, 2012
