Prevent Foreclosure News: Bank of America “Going to Bat” for Homeowners Trying to Stop Foreclosure

In yesterday’s post on stopping foreclosure, we relayed how Chase bank was literally and figuratively clueless when it came to helping the homeowners whose loans they own stop foreclosure.

Well, there’s good news. One bank seems to be coming through for homeowners trying to stop foreclosure — Bank of America.

The large bank is writing down the principals of homeowner loans. What exactly does this mean? The HuffingtonPost.com article, Bank Of America Executive Acknowledges Poor Service In Mortgage Mod Program, details it best, explaining:

. . . an example of a homeowner who owed $250,000 on a home worth $200,000. The bank would take $50,000 off the mortgage and put it in an interest-free forbearance account. If the homeowner keeps up with his payments on the $200,000, the bank will forgive 20 percent of the forbearance account for each of the next three years, and for an additional two years if the homeowner remains underwater.

This is what many homeowners — and President Obama’s prevent foreclosure program — have wanted all along.

Finally, one big bank is playing ball.

Let’s see if others will follow — or force the hand of many homeonwers who are trying to prevent foreclosure; many of who will just do the “jingle mail walk.”

What’s the problem with Bank of America?

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.