Bank of America Offers Mortgage Balance Cuts

Charlotte, NC, May 8, 2012 -- Bank of America has begun offering thousands of underwater homeowners the chance to reduce their principal balance.

The reductions could average $150,000 each and result in monthly savings of up to 35 percent on mortgage payments, Bank of America said in a news release.

The offers are the result of a $25 billion settlement earlier this year with 49 states and the federal government.