Hmm… is this going to cost damage to some trusts? Does BofA even have the power to do so if they are only servicers?
HW-
Borrowers with second liens owned and serviced by Bank of America ($8.83 0%) may qualify to get their subordinate debt extinguished entirely.
The banking giant mailed 150,000 letters to pre-qualified homeowners who are eligible to have their Bank of America second-lien mortgages eliminated.
The program was designed to ease the pains of struggling borrowers who are also dealing with issues on first mortgages and to help more individuals create equity in their properties.
Borrowers receiving the letter will have second liens on collateral property completely removed unless the customer decides to opt out of the automatic relief by sending a response within 30 days of receiving the letter.