Bank of America homeowners that are suffering from an underwater mortgage may benefit from the new program that the Obama Administration has set in place to help homeowners obtain principal reductions. Homeowners that have had trouble in their underwater mortgages have simply been walking away from their home and leaving lenders and the homeowners’ credit, in a bad situation.
However, it is hoped that new principal forgiveness plans are going to keep homeowners in their homes and paying their mortgage and help the housing market as well. The new plan seems to work by having homeowners continue making their mortgage payment but over time they will see their principal reduce if they keep up their home loan payments.
Homeowners that have little incentive to stay in a home that is valued less than their mortgage are hoped to now have a light at the end of the tunnel of their underwater mortgage.
If you are a Bank of America homeowner and have been struggling with an underwater mortgage, you may want to look into your options for getting a principal reduction plan. Before walking away from a mortgage, exhaust your options and be sure you have done all you can to afford your home.