Modification, Refinance, and Short Sale Program Enhancements

Bank of America has reached an agreement in principle that would extend our ongoing commitment to help homeowners struggling to make their mortgage payments. Among other things, the agreement would include enhancements to existing programs as well as the development of new programs.

Please understand that the specific details of these programs are still being finalized. Once the programs are available, we will proactively reach out to you if it is determined you may be eligible for one of the programs. We anticipate that the settlement will include mortgage and home equity loan and line of credit modifications, special modifications for customers who are current on their loans, and short sales.

• Modifications: Bank of America will enhance or create new programs to provide mortgage modification solutions, including principal reduction. With a principal reduction, we would forgive a portion of your unpaid balance that will not have to be repaid.
• Refinances: For mortgages owned by Bank of America, we will offer a special rate reduction modification program for customers who are current on their mortgage payments and owe more than the current value of their homes. Through this special modification program, customers will receive a lower interest rate to achieve benefits similar to those you might get with refinances.
• Short Sales: We will continue to help customers pursuing short sales and deeds in lieu of foreclosure. We may also offer financial assistance to eligible customers transitioning out of their properties.

Please note that Fannie Mae, Freddie Mac, FHA and VA loans will not be eligible for these programs.

The modifications under this program could include lowering your interest rate, extending the term of the loan, which could include moving you from an adjustable to a fixed-rate loan, deferring some portion of the unpaid principal balance to the end of the loan, and/or forgiving some portion of the unpaid principal balance. We will also have a special rate reduction modification program for customers who are current on their loans. A short sale allows you to sell your home for an amount less than what is actually owed in order to pay off the mortgage and avoid foreclosure. Short sales are subject to the approval of the owner of the loan (also referred to as the investor).

Eligibility requirements will vary for each program. Customers with loans owned or guaranteed by a government entity, including Freddie Mac, Fannie Mae or the Federal Housing Administration, are not eligible for principal reduction assistance as a result of this settlement.

Among other criteria, borrowers must be at least 60 days delinquent as of January 31, 2012 and owe more on their mortgage than the value of their home. Customers must also have a loan owned by Bank of America or a loan held by a mortgage investor that has delegated authority to Bank of America.

Bank of America expects to offer programs to eligible customers in all 50 states.

Bank of America is finalizing its program enhancements and expects to provide additional details of eligibility requirements and implementation plans once the final settlement is approved by the courts. Once the programs are available, we will proactively reach out to you if it is determined that one of the programs may provide assistance to you.

If you have questions about this settlement, please contact us at 1.877.488.7814 (Mon-Thu 8am-12am ET, Fri 8am-10pm ET, Sat 8am-6pm ET, Sun 3pm-12am ET).

Eligibility for the Independent Foreclosure Review will not change as a result of this settlement.

Eligibility for the Hardest Hit Fund programs will not change as a result of this settlement. Bank of America will evaluate you for all programs for which you may qualify and consider you for the most favorable alternative for your situation.

If you are currently experiencing a financial hardship and are struggling to make your mortgage payments, help may already be available. Please call us at 1.800.846.2222 (Mon-Fri 8am-12am ET, Sat 8am-8pm ET, Sun 3pm-12am ET) to update us on your situation.

You should continue to explore all of the solutions that are available to you today and continue with the loan modifications if you are already in the process. Once the settlement is approved, customers in the foreclosure process will be considered for the new programs. Bank of America intends to postpone foreclosure sales for many customers who are behind on their mortgages and who may be eligible for the principal reduction programs, provided the home is owner-occupied. However, you should not ignore any foreclosure notices as there is no guarantee these proceedings will be postponed.

Subject to mortgage investor guidance, it is Bank of America’s practice not to proceed with foreclosure until every option to qualify customers for a modification or other solution has been exhausted. Once the settlement is approved, Bank of America intends to postpone foreclosure sales for many eligible homeowners who are behind on their mortgages and may be eligible for the principal reduction programs, provided the home is owner-occupied. You should not ignore any foreclosure notices as there is no guarantee these proceedings will be postponed.

This settlement will not change a completed foreclosure sale, but you may be eligible for cash compensation if your house went through foreclosure between January 1, 2008 and December 31, 2011. If you are eligible, a settlement administrator designated by the Attorneys General will send you a claim form. Please note that Bank of America is not making payments directly to customers.

Specific eligibility details of these programs are still being finalized. However, we expect to offer a special rate reduction modification program that may enable customers who are current on their loans to take advantage of lower interest rates and achieve benefits similar to those you might get through refinance.

If your loan is not owned by Bank of America or another participating investor, it will not be eligible for the program. It is important to note that Fannie Mae, Freddie Mac, FHA and VA loans will not be eligible for these programs.

If you do not know whether or not your loan is owned by Bank of America or another participating investor, please call us at 1.877.488.7814 (Mon-Thurs 8am-12am ET, Fri 8am-10pm ET, Sat-Sun 3pm-12am ET).

Yes, if you meet the eligible criteria for the program.

Specific eligibility details of these programs are still being finalized. However, we expect to offer a principal reduction modification, where we would forgive a portion of your unpaid balance that will not have to be repaid.

If your loan is not owned by Bank of America or another participating investor, it will not be eligible for the program. Please note that Fannie Mae, Freddie Mac, FHA and VA loans will not be eligible for these programs.

If you do not know whether or not your loan is owned by Bank of America or another participating investor, please call us at 1.877.488.7814 (Mon-Thurs 8am-12am ET, Fri 8am-10pm ET, Sat-Sun 3pm-12am ET).

Yes, if you meet the eligible criteria for the program.

You should continue with your loan modification process. Once the agreement is finalized and the new principal reduction program is in place, we will begin reaching out to you if we determine that you may be eligible for one of the programs.

Your home equity loan or line of credit may be eligible if it is owned by Bank of America or another participating investor. Fannie Mae, Freddie Mac, FHA and VA loans will not be eligible for these programs.

If you do not qualify for a modification or just want to leave the property, but it’s worth less than the amount remaining on the mortgage, a variety of short sale programs are available. We will continue to work with all eligible homeowners to pursue a short sale of their property.

By working with us to pursue a short sale, you may be eligible for financial assistance to help with your relocation as well as a deficiency waiver. This means that we would waive the right to collect the difference between the amount owed and the amount resulting from the sale of the property.

For customers in eligible programs, we will continue to offer financial assistance to qualified borrowers who are leaving their property. The amount varies depending on the program.

Yes, you may be able to pursue a short sale. However, you will need permission to pursue a short sale from the lender who gave you your home equity loan or line of credit (also referred to as a second lien or second mortgage). You will have to contact that lender and request a Second Lien Release as part of the process of getting a short sale from Bank of America. Your home equity lender needs to provide this form and send it to you before your short sale can be considered.

Help may already be available. Please contact our dedicated military assistance unit at 1.877.430.5434 (24 hours a day, 7 days a week) to update us on your situation. Our military assistance unit is trained specially to work with military customers, and a dedicated specialist will work one-on-one with you to evaluate all available home loan assistance programs.

If you are an active duty servicemember and you qualify for Servicemembers Civil Relief Act (SCRA) benefits, you may be eligible for a short sale.

If you qualify for a short sale as an eligible servicemember, we will waive the difference between the amount owed and the amount resulting from a short sale (also referred to as a deficiency waiver). Limits on the amount of the waiver may apply.