Last Updated Apr 26, 2011 4:44 PM EDT
New programs such as a principal forgiveness loan modification for enlisted men and women who have fallen behind on their mortgage payments, offer the lending institution an opportunity to address the particular challenges facing U.S. soldiers and military support staff.
"Military men and women face extraordinary circumstances, and they make unique sacrifices for all of us. For these reasons, we want this combination of tools to address their needs and help them when they need it most," noted Terry Laughlin, Bank of America executive vice president.
Along with the principal forgiveness loan modification, Bank of America is also offering a reduced 4 percent interest rate on mortgages to personnel who qualify for Servicemembers Civil Relief Act (SCRA) protection.
A dedicated mortgage customer service unit established for military clients will walk interested parties through all of their options. Call toll-free at (888) 325-5357 to get the process started.
Bank of America envisions implementation of the new programs as a series of steps:
- Beginning with principal forgiveness, borrowers may reduce the amount owed on their mortgage to as little as 100 percent of current market value.
- If required, an interest rate reduction and extension of loan terms aim to help military customers achieve an affordable mortgage payment.
"Bank of America has a long-standing commitment to military personnel and has provided them with specialized financial services since 1920. We continually evaluate our programs, and we have been looking at the unique needs of our military customers in today's challenging housing market for several months. The modification program has been under discussion...and is a response to the needs of these customers in their special situation."Do you think Bank of America's new programs will have an impact on the mortgage hardships facing our armed forces?
To read the full press release, click here.
More on MoneyWatch:
- Want a Mortgage? Is Your FICO Credit Score 780?
- HUD 2012 Budget Highlights: You're Screwed
- Report: Smaller FHA Loans Reduce Taxpayers' Risk
- Home Values Decline Further in 4Q 2010
- Biggest Losers and Biggest Winners: Where Home Values Are Rising And Falling
- Top 10 States For Foreclosures in 2010
- Foreclosure Lawsuit Upset: Court Rules Against Wells Fargo and US Bancorp
- FHA's Reverse Mortgage Standards Get Tougher in Response to Increased Delinquency
- Pending Home Sales Up in November, Realtors Provide Economic Forecast for 2011
- 10 Best Cities to Rent Rather Than Buy
- Home Improvement: Remodeling Projects with Biggest Payoff
- Most Expensive Housing Markets In America
- Top 5 Markets For Great Real Estate Deals
- Housing Prices Rebounding Here
- Tea Party: Don't Let Renters Vote
- Are You Getting Screwed by Your Lender?
- Foreclosure Process Shows Mortgage Lending Isn't The Only Problem
- Real Estate Crisis Continues - Non-Residential Construction to Fall 20% by End of 2010
- Jobs, Small Businesses, Payrolls, and the Economy
- Loan Modification Hell: New Solutions To Avoid Losing Your Home
- Bank of America, Ally Bank Extend Foreclosure Freeze to All 50 States
Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com and The Equifax Personal Finance Blog, and is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.