Per BoA, it’s not going to help very many people. It’s only targeted at sub-prime and pay-option ARM’s, NO prime loans. BoA stated it projects only helping about 45,000 qualifying loans of it’s more than 1 mill.
They may modify the program further but remember, the banks only do what’s in THEIR best interest. I’m sure they have figured out what local RE markets are their worst performing (down 30-50%) and most underwater, only offering these mods to them, as they don’t want these people walking away. Banks have become pretty RE savvy over the last two years…
If you’re in an area where values are only down 20%, I seriously doubt they are going to give you any principal forgiveness, as they know your local market has relative strength, and they prefer short sale or foreclosure.
I can see them writing down 60K on a $200K house in a crappy local RE market with little upside potential, but I can’t see them writing down 150K on a 500K house in a quality neighborhood with decent potential for stability or upside in the next three years.
