This page was written, edited, reviewed & approved by Emil J. Fleysher following our comprehensive editorial guidelines. Emil J. Fleysher, the Founding Partner, has 15+ years of legal experience as a bankruptcy attorney. Our last modified date shows when this page was last reviewed.
Bank of America, one of the five banks in the $25 billion settlement with the government over foreclosure practices, has struck a side deal. It will allow it to reduce penalties in return for bigger cuts to borrowers’ mortgage balances. Bank of America will make deeper and broader cuts than other banks; it will allow it to avoid as much as $850 million in penalties. And, it will give more than 200,000 financially strapped households the opportunity to sharply reduce their mortgage balances.
This deal is unique to Bank of America and many of the write-downs will be made on loans originated by Countrywide Financial Corp. Borrowers who qualify will receive principal reductions averaging more than $100,000. The side deal offers qualifying borrowers a chance to cut their mortgage balances to their home’s current market value. Whereas other banks must under the national settlement cut principal to no more than 120 percent of the home’s value.
If you have questions about foreclosure, loan modification, bankruptcy; or other alternatives, please feel free to call my office at 954-484-9987. Or, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.
Emil specializes in consumer bankruptcy, debt settlement, and mortgage modification, offering a holistic approach to solving mortgage and debt problems. Emil listens to clients, understands their circumstances and goals, and helps them make the right choices by presenting all options and contingencies.
He is dedicated to helping South Floridians regain their financial freedom from overwhelming debt caused by high interest credit cards, bad mortgage loans, and uninsured medical expenses.
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