It was reported in the news today that Bank of America made a "side deal" with the government related to the "robo-signing" scandal. If you missed the news, robo-signing is a catchy name for lying, cheating, and stealing automatically (robotically) while thinking only about profits.
As part of the side deal it cut with the government, Bank of America will give some borrowers principal reductions. We'd speculate that the real result of this program will be "almost all talk, almost no action." That remains to be seen.
But what many may not be aware of is that some borrowers - including those who used "80/20" purchase loans - may be able to get the equivalent of a 20% principal reduction of their total mortgage debt by stripping their second mortgage lien in Chapter 13 bankruptcy. If you are interested in how this process works, and whether you might qualify, contact us for a free consultation.
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Law Office of Jason Honaker