by Cheryl Tay
Bank of America Corp (BofA) has started contacting over 200,000 mortgage customers who may qualify for a mortgage reduction, as part of the settlement programme involving alleged foreclosure abuses.
BofA said potential candidates will start receiving letters this week, asking them to provide financial information as part of a review process for the programme.
To become eligible for the settlement programme, borrowers must be two months behind on their mortgage payments and their mortgage debt must exceed the current value of their properties.
The bank added that eligible parties could see their monthly mortgage payment reduced by around 30 percent and in some cases, homeowners can save as much as US$100,000 (S$125,015).
BofA plans to have mailed out most of the letters by end of Q3 this year.
Related Stories:
Wells Fargo gains market share as competitors retreat
Golden opportunity for Aussie borrowers
Mortgage rates in US still plunging