Bank of America said it has started sending letters to 200,000 mortgage borrowers who may be eligible for loan modifications, as part of the $25 billion legal settlement between large banks, the federal government and most state governments including South Carolina.
The settlement, announced in February, was meant to resolve claims of foreclosure-related abuses against five major banks.
Bank of America said it will contact customers who may qualify during the next several months. The modifications are meant for customers who owe more than their homes are worth, were at least 60 days behind on payments as of Jan. 31, and have home payments (including insurance and property taxes) that exceed 25 percent of their gross household income.
The bank estimates average monthly savings of 30 percent on mortgage payments of customers who qualify.For further information on the settlement programs, Bank of America Home Loans customers may call 877-488-7814.
The other banks involved in the legal settlement are Wells Fargo, J.P. Morgan Chase, Citigroup and Ally Financial. Wells Fargo said it began contacting customers about settlement-related modifications in March.
Read more in Wednesday’s editions of The Post and Courier.