Some Homeowners Could See Steep Reductions

Charlotte, NC, March 13, 2012 -- Bank of America will substantially cut mortgage balances for as many as 200,000 borrowers, as part of a sweeping agreement.

The $26 billion settlement reached between the five major mortgage servicers, the federal government and the attorneys general of 49 states and District of Columbia last month could result in Bank of America reducing qualified mortgages by an average of $100,000 or more.

Those principal reductions are much steeper than the ones originally announced as part of the robo-signing settlement deal.