Monday, Aug 8 2011 2:43PM
Bank of America joined a program in California to aid homeowners having difficulties paying their mortgages.
Bank of America has agreed to write down the mortgage principal for many troubled borrowers in California, the California Housing Finance Agency (CHFA) announced recently.
The bank's move comes through a new state initiative, called Keep Your Home California's Principal Reduction Program, that has sought to help people facing potential foreclosure. The program is part of a $2 billion campaign to assist homeowners who have become delinquent with their home loans.
Bank of America is among the nation's largest banks to join the program, which began earlier this year. The CHFA stated the bank has written down the principal on many mortgages as part of its pilot program that began in February.
"California has been particularly hard hit by reductions in property values," said Rebecca Mairone, national mortgage outreach executive for Bank of America.
In all, Bank of America services more than 2.2 million home loans in the state, CHFA reports. The bank's assistance should give the program a significant boost and help many rural homeowners stay in their homes.