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The Law Offices of Lance Denha, a multistate foreclosure defense law firm, offers their analysis of Bank of America’s recent decision to widen its principal reduction offerings
Bank of America announced last week that it has started sending letters to thousands of homeowners in the United States, offering to forgive a portion of the principal balance on their mortgages by an estimated average of $150,000 each. This reduction for qualifying homeowners could amount to monthly savings of up to 35 percent on mortgage payments, Bank of America said in a news release on May 7, 2012.
The principal reduction offers from Bank of America Home Loans are the direct result of a $25 billion settlement agreement earlier this year with 49 state attorneys general as well as federal authorities who had been investigating allegations of abuses over the handling of foreclosures, as reported in March of this year by the Associated Press. “ To the extent principal reduction and other modification tools help us turn mortgages headed for possible foreclosure into long-term performing loans, it will be positive for homeowners, mortgage investors and communities,” Ron Sturzenegger, a legacy asset servicing executive, said in the statement. Lance Denha, Esq. of the Law Offices of Lance Denha commented however that “The banks involved have up to three years to meet the provisions of this settlement although there are incentives for banks to assist homeowners in the first twelve months.”
Bank of America said it planned to contact more than 200,000 homeowners who could be candidates for the offers, sending letters to a majority of them by the third quarter of this year. To be eligible for the principal reductions, however, homeowners will have to meet certain criteria, including: having a loan owned or serviced by Bank of America; owing more on the mortgage than their property is worth; and being at least 60 days behind on payments as of the end of January. Mr. Denha was quick to note, “ Catering only to those borrowers 60 days or more behind on payments has the added benefit to Bank of America to avoid any potential legal hurdles in cases where shoddy paperwork makes it difficult for them to prove it owns the mortgage and has the right to foreclose. It’s a strategic move by Bank of America to assist those homeowners that it initially tried to foreclose on during the Robo-signing period that resulted in the settlement. Many of the original problems and irregularities still exist.” The Associated Press noted at the time of the settlement that Bank of America had the largest financial obligation under the settlement at $11.8 billion.
“The bottom line is this,” says Lance Denha,” Those who help themselves succeed more than they fail. Those who are conditioned to waiting for the state or federal government to make the banks do the right thing are likely to find themselves with few options. The wise homeowner is already pursuing his bank in the right medium: the courtroom. He is well-prepared, usually has retained an attorney, has the evidence of a securitized loan audit and can prove his case.”
The Law Office of Lance Denha P.A. is committed to ensure that every possible avenue is pursed so that the homeowner’s legal rights are preserved. Actively monitoring the ever changing landscape of foreclosure laws, recent foreclosures across the nation as well as state imposed rules and procedures associated with foreclosure, is vital to ensure and protect these rights. The Law Offices of Lance Denha P.A. is a multistate law firm and helps legally defend wrongful foreclosure actions and utilize any and all legal tactics available to help accomplish preserving homeowner’s rights. For further information or assistance, please call at 954-840-0770.