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The ink is hardly dry on the $25 Billion foreclosure settlement deal and Bank of America is already releasing some preliminary info on how they intend to comply. Last week they announced that they are going to reduce principal balances on as many as 200,000 homeowner’s loans. The number they are throwing around is an average reduction of $100,000. For some homeowners, this could wipe out the entire amount that they are underwater. For others it could be just a drop in the bucket. It’s not clear yet if everyone will get the same dollar amount of principal reduction or if there will be a formula. To be eligible the loan must be serviced by Bank of America, and either owned by Bank of America or private investors. This includes those loans that started at Countrywide. Loans owned or insured by Fannie Mae, Freddie Mac, the Federal Housing Administration or the Veteran’s Administration are not eligible. The loan must also have been at least 60 days behind as of January 31. Bank of America will begin contacting homeowners that qualify starting in April. They have three years to do the principal reductions to comply with the foreclosure settlement, but there are incentives for them to complete them quickly. If you have a Bank of America loan, you can call 877-488-7814 to see if you are eligible and for more information. If you find out that you are qualified, please let me know and we’ll rejoice together! If you have questions on this or any other real estate topic, call me at (925) 240-MOVE (6683). To search the MLS for free and view virtual tours of homes for sale, go to: www.SharpHomesOnline.com. Sharp Realty