Bank of America has made a financial move and commitment that should help Las Vegas Homeowners and others around the US.
BofA unveiled a $3B plan this week that is geared for helping borrowers who may be experiencing difficulty. They have indicated they will “forgive” up to 30% of the total Mortgage Balance for about 45,000 borrowers who should qualify for the program.
This plan is part of a larger agreement that Bank of America made with a number of attorney generals in 2008 that involved Bank of America’s acquisition of Countrywide Financial Corporation.
What will the impact be on Las Vegas Homeowners? It’s a bit early to tell, but we think since BofA controls approximately 20% of all outstanding Las Vegas home loans this could have a big impact on our local market.
The net results should be less homes going into foreclosure, which will in turn help our market stabilize and this move by BofA could also motivate other large banks to offer similar programs, which would also have positive impact locally and nationally.
