LOS ANGELES (AP) — Bank of America says it has begun contacting some its customers who may qualify to have their home loans reduced as part of a multistate settlement over alleged foreclosure abuses.
The bank said Tuesday that some of those more than 200,000 customers potentially in line for a reduction in the principal balance on their mortgage should receive letters about the program beginning this week.READ MORE: Reality Sets In For Fawn Fire Evacuees In Shasta County
Among the criteria to qualify, borrowers must owe more on their home than the property is worth.READ MORE: Sacramento's New Response Team Looks To Address Mental Health, Homelessness
The lender and four other major banks settled the foreclosure abuse allegations in February.
Most of the $25 billion settlement is earmarked for reducing loans for about 1 million U.S. households that owe more on their mortgages than their homes are worth.MORE NEWS: Sacramento County Boots Gibson Ranch Horse Riding Operator After 8-Year-Old Suffers Injuries
Copyright 2012 The Associated Press.