Tuesday, March 30, 2010

Bank of America will cut mortgage loan amount for underwater homes - USATODAY.com

It's about time one of these banks got smart and started doing something to protect their investments. B of A is taking action to "stop the bleeding" of declining home values amid this waive of foreclosures. They will offer principle reductions to home loans starting in about a month. Although this is a small step, I hope it will lead to larger measures taken by itself. They are starting small, limiting this option to only a few borrowers that meet their specific criteria. Although I think they need to expand this program, maybe if they can manage it effectively then they can expand it to a larger set of borrowers.

This gives me hope that maybe I should hold onto my condo for a bit longer instead of starting the short sale process. We'll see.

Bank of America will cut mortgage loan amount for underwater homes - USATODAY.com
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