Sunday, July 29, 2012

Two Hundred and Seventeen Thousand Dollar Principal Reduction

Below is an excerpt from a letter that one of my clients received this week after reading one of my blog posts and contacting their bank:

We are pleased to inform you that you are approved to start a Trial Period Plan for the new modification program recently introduced as a result of the US Department of Justice and State Attorneys General global settlement with major mortgage services, including Bank of America, N.A. This modification program includes significant principal reduction and an affordable monthly payment.

If you complete this Trial Period Plan by making all payments as outlined below, any past due late fees will be waived, interest and advances that we paid on your behalf will be added to your principal balance, and your loan will be brought up to date. We will then permanently reduce your principal balance by the amount of $217,709.41.*In addition, we will reduce your interest rate to 3.63%

This client had tried several loan modifications, then we initiated a Short-Sale, THEN, I read about Bank of America offering tremendous principal reductions to certain homeowners. The information said that the bank had to contact you, but my client contacted them directly and, 3 months later, received the news.

They had been so frustrated, were ready to just give up. Their income, like many others, had been hit hard with the economy and they had a medical issue as well. Good people, in a bad situation. Oh, and the trial period? Three months, only three months!

My local rep at Bank of America had this to say:

Happening more and more – but only with bank held loans…

So, while it may not happen for you, it just quite possibly could! Keep plugging away. If you are struggling, and many still are, don't give up! Especially if you have a bank held loan by one of the Robo-Signing Settlement big ones!

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