According to MSNBC Bank of America, will pay $8 Billion over the subprime lending suite that was filed. Some of the terms calls for BofA to modify bad mortgages for nearly 400,000 Countrywide customers. If you remember Countrywide was the mortgage company that Bank of America purchased.
A few of the specifics for the troubled mortgages:
* $8.4 billion in interest rate and principal reductions for nearly 400,000 customers.
* Loan modificagtions will take place in 11 states
* Some of the Countrywide customers will only have to pay interest for a period of ten years.
* People who cannot afford to keep their homes after the changes will get help moving to new homes.
Bank of America will initiate the new mortgage aid program in December, which calls for customers payments to be revised so that they don;'t exceed 34 percent of income.
Other options call for reducing interest rates and adjusting principal so borrowers won't lose equity.
CountryWide will not charge loan modification fees and will waive prepayment penalties.
And finally the agreement involves no tax money.
It looks like it's a win win situation for all involved. We still have a long way to go before things get completely resolved but this is a start.
To your success
Mel Richardson
P.O. Box 538
Jessup, Maryland 20794
Melvin21@msn.com
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