According to Money.com in December 2008, Bank of America will begin implementing the most aggressive foreclosure prevention effort ever created by any U.S. bank. To help save as many as 400,000 troubled borrowers from foreclosure, Bank of America will cut monthly housing payments to no more than 34% of gross income. There are no prepayment penalties or modification fees for borrowers in the program.
Who May Be Eligible For The Program
- Only distressed borrowers who signed up with Countrywide Financial between January 1, 2004 and December 31, 2007 are be eligible for the program.
- Countrywide borrowers in subprime ARMs, subprime fixed rate loans, option ARMs and borrowers who did not document their income.
- Countrywide borrowers in all 50 states are eligible to participate in the program.
The Countrywide program will screen all of its borrowers to see if they meet the eligibility requirements. Those that are eligible will be contacted directly and given loan workout offers designed to prevent foreclosure.