Bank of America has announced that letters are being mailed to borrowers who may be eligible for the foreclosure relief program included in an agreement with state Attorneys General announced last October. Up to $150 million is allocated nationally to provide assistance for certain borrowers who experienced a foreclosure, short sale or deed-in-lieu of foreclosure on their mortgage originated by Countrywide. Participating states may have additional eligibility criteria.
Reportedly, forty states are participating in the program and have been allocated funds. Borrowers will be notified by letter from their state if they are eligible to receive a settlement payment. Payment amounts will vary. The bank has added that third-party administrator, Rust Consulting, will manage notifications and payment processing. T
he administrator will begin issuing checks during the first quarter of 2010. The National Homeownership Retention Program, is designed to achieve affordable and sustainable mortgage payments for up to 400,000 borrowers who financed their homes with subprime or payment option adjustable rate mortgages serviced by Countrywide.
The agreement also provides relocation assistance to borrowers who experience a foreclosure sale and agree to leave the property voluntarily and appropriately. They are eligible to receive a cash payment to ease their transition to a new place of residence.
