Many people have been forced into bankruptcy or ended up in foreclosure over mortgage debt troubles in recent years. As more people began to seek help problems in lending practices arose, causing further trouble for homeowners. After a long battle, several big banks were ordered to participate in a $25 billion mortgage settlement.
Some of the big banks involved in the mortgage settlement were found guilty of unlawfully foreclosing on homes and engaging in stubborn lending practices. Prior to the mortgage settlement, many lenders were denying qualified homeowners access to foreclosure solutions like loan modifications or refinancing offers. Now that the banks have been reprimanded and ordered to pay billions in restitution payments, some lenders are taking their efforts a step further.
Bank of America is one of several well known mortgage lenders participating in the mortgage settlement payout, but they are also starting their own initiative to help homeowners as well. Now offering more refinancing and loan modification options than in years past, Bank of America is sending out letters regarding these offers in hopes of reaching distressed homeowners before foreclosure sets in. Having already provided 5,000 families with loan modifications, another 200,000 more should be receiving notification of their eligibility in the weeks to come. Bank of America is just one of a few lenders taking extra steps to help homeowners and help resolve the mortgage debt crisis.