Bank of America announced Friday that it is sending letters to 150,000 homeowners eligible for automatic cancellation of their second-lien mortgages, the Charlotte bank's most recent move under the terms of the $25 billion mortgage servicing settlement announced earlier this year.
Letters are going to customers whose second-lien mortgages are owned and serviced by Bank of America. Most are delinquent, and many are on a property with a delinquent first-lien mortgage.
The letters began going out in July and will continue through the end of the year. Homeowners who receive them will have the debt forgiven automatically unless they opt out within 30 days.
Homeowners cannot request to be a part of the program.
Friday, September 28, 2012
BofA cancelling second-lien debt for up to 150,000
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4 comments:
Wow, silly me has been paying our mortgage on time even though my husband was laid off, unemployed for a long time and is now underemployed. I'm angry that people who can't pay their mortgage are now getting their second mortgages written off like it's Christmas. When will being RESPONSIBLE ever be rewarded?!
You are rewarded when you look at your credit score. You are rewarded when make your last payment. You are rewarded when you stop complaining and start congratulating.
You'll also enjoy a nice 1099-C with your taxes this year. Because you will now have to report that forgiveness of debt as income on your tax return. And if you "forget", you'll get smacked with a tax lien.
Interesting comments, I guarantee you that if these "mortgage holders" got in arrears with their primary financial responsibilities that getting "smacked" with a tax lien is not going to bother them until next year when looking for tax return. Unbelievable.......
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