Bank of America to forgive some second-lien mortgages
Bank of America has announced it will release some homeowners from debt obligations on second-lien mortgages as part of the bank’s ongoing efforts to help customers in need of mortgage assistance.
The bank is in the process of mailing about 150,000 letters to pre-qualified homeowners offering automatic extinguishment of the liens. The specific number of letters sent to Nevada homeowners was not available.
The debt forgiveness on eligible loans is being extended under Bank of America’s participation in the $25 billion national mortgage settlement among the five largest mortgage servicers.
To qualify, customers must have a second lien owned and serviced by Bank of America that meets certain threshold delinquency or property value criteria, or a second lien associated with a first-lien mortgage that is severely delinquent. It does not matter who owns and services the first lien.
The vast majority of the second-lien mortgages eligible for this program are in default in their subordinate lien position.
The intention of the program is to place homeowners in an improved financial situation by reducing their monthly debt obligations and, potentially, help them create equity in their property.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.