Do you think BofA’s cramdown offers are likely to extend beyond 200,000 to greater numbers of underwater California homeowners?
No (70%, 52 Votes)
Yes (30%, 22 Votes)
Total Voters: 74
Bank of America (BofA) has begun offering principal reduction (cramdowns) to homeowners in compliance with the $25 billion settlement reached with state attorneys general this year.
BofA plans to mail cramdownThe reduction of the principal balance of a loan. In first tuesday context, cramdowns are a tool used to provide debt relief for underwater homeowners. offers to over 200,000 homeowners nationally. The estimated average reduction is $150,000 per homeowner, saving each candidate roughly 35% on their monthly mortgage payments.
A member of BofA’s executive management team hailed cramdowns as beneficial to homeowners, mortgage investors and entire communities. Cramdowns are also a boon to lenders such as BofA since they transform an unprofitable foreclosure into a long-term performing loan, he said.
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