May 26, 2018

BofA to Eliminate Some Second Lien Mortgages

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BofA to Eliminate Some Second Lien Mortgages

Bank of America announced that it will be eliminating second-lien mortgages for about 150,000 eligible borrowers. 

The bank mailed 150,000 letters to home owners who are eligible for the program, which is aimed at providing relief to home owners also facing trouble with making their first mortgage. The program is also to help more struggling home owners obtain equity in their homes quicker. 

Home owners who are eligible will have the entire unpaid principal balance removed on their BofA owned or serviced second lien mortgage. 

The relief will be automatic to borrowers who are eligible, unless they choose to “opt out” of the program. 

"The elimination of the second lien mortgage is completely separate from any actions being taken regarding the first mortgage," BofA said in a statement. "If the first mortgage is in foreclosure, those foreclosure activities may continue."

Source: “Bank of America to Extinguish up to 150,000 Second Liens,” HousingWire (Oct. 1, 2012)

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