Bank of America will reduce the principal amount for as many as 200,000 underwater homeowners. As a result of a recent government foreclosure settlement, the major bank will reduce each principal amount by about $100,000.
Eligible underwater homeowners include those that have a loan serviced by B of A and are at least 60 days delinquent on their mortgages as of January 31, 2012. Loans owned by other private investors, like Countrywide Financial Corporation are also eligible.
For more details, read the entire Los Angeles Times article.
[Image Credit: Taber Andrew Bain]