Bank of America Home Loans extending Principal Forgiveness to help Avoid Foreclosure

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[Best Syndication News] Bank of America announced that they will put a priority of principal forgiveness ahead of adjusting interest rates of mortgages that they currently hold that are subprime, Pay-Option, and prime two-year mortgage loans which qualify for the National Homeownership Retention Program (NHRP).

They mortgage principal forgiveness is aimed at modifying mortgages that are severely underwater the company says. They are hoping that customers will be able to retain home ownership with this program and the government's Home Affordable Modification Program (HAMP).

Currently Bank of America is offering the NHRP program in 44 states and the District of Columbia. The NHRP program was launched in 2008. The company got the state's attorney generals to work with them on people that had borrowed via Countrywide mortgages that were adjustable rate mortgages (ARMs). Bank of America acquired Countrywide in July of 2008 after it became troubled.

Subprime loans and Pay-Option ARMs, along with prime two-year ARMs have had the highest rate of delinquency rates and these programs help to keep the homeowner's in their home and avoid the foreclosure process.

So far Bank of America has reduced the principal through NHRP enhancement for 45,000 customers that have also qualified for the HAMP modification. They estimate that $3 billion has been reduced off the principals of these mortgages.

Bank of America has 175,000 homeowners currently that have been offered an NHRP modification or has started a NHRP-eligible trial modification under the HAMP. These mortgage modifications could save homeowners $7.2 billion over the full term of the loans.

Bank of America said that those that have mortgages with them and are in trouble could find out more about the program at www.bankofamerica.com/homeloanhelp .

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