Bank of America executives acknowledged Wednesday they are seeing high numbers of underwater mortgage borrowers walk away from their homes and that the bank has been slow to rework mortgages.
BofA unveiled new programs aimed at helping underwater borrowers who have subprime and other nonconventional loans. The program will reduce loan principal for borrowers who are underwater by 20 percent or more and are at least two months past due. The program announced today does not offer help to borrowers who are current on their mortgages and have traditional loans.
The U.S. banking giant is sending letters to borrowers who qualify for the program and hopes to start modifying more mortgages this summer. Banks have been faulted for being slow or unwilling to modify distressed loans in hard-hit housing markets such as Phoenix.
Bank of America is one of the largest mortgage lenders in Arizona.

courtesy of: Mike Sunnucks

Read more: BofA offers help to underwater, delinquent borrowers – Phoenix Business Journal