Principal Reduction Modification with Bank of America
Although principal reduction is rare for a loan modification, we have been successful in obtaining loan modifications with principal reduction for our clients in Riverside County. A recent loan modification we obtained for a client saved the clients both on their monthly payment as well as significant principal reduction making the balance owed on the home equal to the value of the home.
Client TC in Sun City, California (Riverside County)
Lender: Bank of America
Payment Before Modification: $2,927 (includes principal, interest, taxes, and insurance)
Loan Balance: $410,000
Monthly Payment: $1,964.83 (includes principal, interest, taxes, and insurance)
Principal Reduction Benefit: $204,129.61
New Principal Balance: $205,871
Under the new modification, the borrower saves nearly $1,000 a month over their previous payment. This represents a 33% percent savings in mortgage payments each month. Additionally, the borrower will have a principal reduction of $204,129. This allows the homeowner to no longer be underwater on the home.
If you are considering a loan modification with Bank of America, our office can help you consider your options. While not every client obtains a loan modification with principal reduction, we can help you obtain your best result. Call us today at (951) 801-5570.