Bank of America announced that they are going to take steps to help homeowners who are in financial trouble. BofA's steps go well beyond the requirements set by the Servicemember's Civil Relief Act, which offers protection from excessive interest rates and foreclosure.
The Bof A plan, which will go into effect this April, will offer principle forgiveness - cutting the balance on home loans "to as low as 100 percent of the current market value" for separating military members - those who would no longer be covered by the SCRA. The bank will also offer reduced interest rates and extended periods to pay the loan if that reduction isn't sufficient.
In addition BofA will cut mortgage interest rates for active-duty military members to 4% - one third lower than the 6% cap required by SCRA.
Read BofA to Cut Interest Rates for Some Military to get the whole story.
