Homeowners with Bank of America may be able to benefit from the Obama mortgage principal reduction plan on their underwater mortgage. Homeowners have been seeing a big drop in their home values over the last few months and many are asking that their principal balance be reduced as a result.
Those who have an underwater mortgage and who see their home as an investment have grown very aggravated. Many homeowners with an underwater mortgage have gone so far as to walk away from their home entirely.
However, homeowners are hoped to stay with their mortgage obligation as a result of the principal reduction plan being offered through the home loan modification program. Homeowners that make on-time payments over a set period of time will see their principal reduce.
This has many homeowners angry and saying principal reductions are unfair. Some lenders are even unwilling to offer principal reductions as a result, but there are many that feel home prices were inflated at the time of purchase so homeowners feel that a principal reduction is owed to them.
While not everyone will qualify or get a principal reduction, homeowners with Bank of America should be aware this option might be available to them.