Bank of America to Reduce Mortgage Balances

Bank of America announced Wednesday that it would introduce a program to help distressed borrowers from losing their home. The program focuses on loan modification for those who have experienced a hardship, yet continue to make payments over a period of time. The article below does a great job of explaining all of the details of the program, and outlines the situation at large.

While not perfect, it's another way lenders are trying to limit the amount of foreclosures. By avoiding foreclosures, banks are taking short losses today in hopes of avoiding devastating losses down the road. Efforts like these are being encouraged by the government and community organizations alike in an effort to stabilize home prices and neighborhoods, protect homeowner's credit, and minimize losses suffered by lenders.

New York Times Article