Bank of America Restructuring Home Loans Now

Good news for those of your who own Costa Mesa homes with a Bank of America (or formally Countrywide) loan. B of A has cut a side deal after the $25B mortgage settlement to offer massive principal reductions to homeowners that are underwater, a major move that the other large servicers such as Chase and Wells Fargo will not likely be allowed to offer.

 

 

Bank of America has been extremely slow and difficult to deal with if you have been a Costa Mesa homeowner that has a mortgage nearing foreclosure or in arrears. As part of the $25 Billion settlement that B of A agreed to with the attorney general and the federal government, the bank has agreed to reduce penalties it owed to the government in exchange for large cuts to underwater borrowers by reducing their mortgage balances.

 

Bank of America Restructuring Home Loans Now will help those struggling, obviously, by providing a kind of reset to the present balance. That’s great news for those Costa Mesa homeowners facing tough times. And don’t get me wrong – the bank is doing this for their own good. The word on the streets is that they will offer approximately 200,000 homeowners the opportunity to cut their mortgage balance. If you have one of these loans for your Costa Mesa real estate home, I would quickly contact the bank.

 

According to Reuters, qualified borrowers are expected to receive principal reductions averaging over $100,000, citing a Bank of America spokesperson. Those receiving the reductions will see their mortgage balance cut to their home’s current market value, as opposed to the other banks in the settlement that cannot cut principal by over 120 percent of the home’s value. Also of note – apparently the lion share of these reductions will be made on those loans originated by Countrywide Financial.

 

 

Bank of America is still open and liable to other government intervention, as an Obama task force is still investigating the large loan makers.

 

There were a great number of Countrywide origination here locally. Countrywide Financial was extremely aggressive, especially with their interest only and adjustable ARM products. When values were at their peak, I wouldn’t be surprised if you told me that Countrywide originated 40% of the loans here locally. They were everywhere. They seemed to be in every deal.

 

Moral of the story, if you have a Countrywide originated loan, and if you have managed to hold on this long to your Costa Mesa property, I would quickly contact the bank to see if you can get in on the settlement.

 

Need other help with Costa Mesa real estate? I would love to help. Feel free to contact Colin at (714) 743-9882 or E-mail me here to reach me.