 Leave a comment »Coconut Creek Real Estate: Foreclosure Prevention Measures - Part IIIWelcome to the Part III of my series on foreclosure prevention measures. As we have seen, the government and its agencies have stepped up with various plans to stem the foreclosure rate in the U.S., but what are banking and loan institutions doing to help? Three of the world's largest banks have announced individual plans to provide loan modifications to their borrowers. Over the next few days we will take a look at what Bank of America, JP Morgan Chase, and Citigroup are doing to assist struggling homeowners.
When Bank of America bought Countrywide Financial, they bought into a load of bad loans. Attorney Generals were filing suits left and right against Countrywide and in response, Bank of America announced plans to modify the loans of approximately 400,000 borrowers. Countrywide staff will begin reaching out to borrowers beginning December 1st. They have also placed a moratorium on foreclosure proceedings for those borrowers who will most likely qualify for assistance through this new loan modification plan. The loans of delinquent or at-risk borrowers will be modified through interest rate reductions, principal reductions, or through the FHA Hope for Homeowners plan. Bank of America has also announced plans for a $150 million dollar "Foreclosure Relief Program" designed to compensate Countrywide borrowers who either went through or are at risk for a foreclosure. Additionally, another $70 million dollar plan has been announced to assist Countrywide borrowers who are facing "imminent foreclosure" by providing them financial assistance in their search for a new home.
Tomorrow: JP Morgan Chase
Related Articles:
Coconut Creek Real Estate: Foreclosure Prevention Measures - Part I Coconut Creek Real Estate: Foreclosure Prevention Measures - Part II
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