Bank of America to modify 400,000 mortgages
Bank of America announced that it will modify 400,000 mortgages totalling $8.4 Billion. The subprime, adjustable rate and pay option mortgages were originated by Countrywide and assumed by BofA when they acquired Countrywide's loan portfolio.
While it's good news for the 400,000 families facing foreclosure who will be able to refinance through the Federal Housing Administration (FHA), get lower interest rates and /or get a reduction in the amount of the principal and most importantly, be able to stay in their homes.
But it doesn't help those responsible homeowners who have cut the family budget in order to continue to make their monthly payment on time and live up to the terms of the agreement they signed when purchasing their homes.