Mortgage Lender to Aid Struggling Military Personnel
Starting next month, leading mortgage lender Bank of America – as well as a new national, nonprofit network – will both begin offering financial relief to military personnel struggling with their mortgage payments.
Under the Bank of America program to launch April 1, the nation's largest lender will offer service members two primary forms of assistance: partial home loan forgiveness and reduced mortgage interest rates.
Loan forgiveness will be provided to certain military borrowers whose homes are under water – meaning they owe more on the homes than those properties are worth. In a statement, Bank of America said it would consider reducing those home loan balances to the current market value of the properties.
Additionally, Charlotte-based Bank of America said it will lower to 4 percent the interest rates on home loans for some military personnel. That's an even better deal than the 6 percent interest rate provided by the Service Members Civil Relief Act.