BofA offers Principal reduction

by sfishome on March 24, 2010

Pretty stunning announcement even though there are caveats galore.  Per BofA 45,000 of their borrowers qualify for loan balance reductions.  Read the WSJ article here.  I’d expect this to be a great alternative to Short Sales (and certainly foreclosures) for those who want to stay in their homes.  The next question – how will the IRS treat the forgiven debt?

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