As some of you know, the Bank Of America has reached a settlement regarding action taken against them in several states.   This action  will not only have an impact on people who purchase Laurel real estate, but anyone who buys Maryland real estate.

The settlement stems from the numerous Countrywide home loans that are headed to foreclosure.  Several states filed suits against the new owner of Countrywide, Bank of America.  This action has lead to a settlement that could effect the whole country.

In the agreement, Bank of America will be very aggressive in helping owners keep their homes.  The remedies include lowering the total loan amount to what a property would sell for today.  For example; if you bought your home for $400,000 two years ago and now it is only worth $270,000, Bank of America will lower what you owe to $270,000.

One of the main aspects of Bank of America’s goal is to lower a home owner’s payment to no more than 34% of the person’s gross income.  It is possilbe that someone could have their interest rate lowered as well and the rate would be fixed for 30 years.

The result of the above actions could lead to a significant amount of people being able to retain their homes.  The logical result of this is a reduced inventory of homes for sale.  A reduced inventory could lead to price stabilization and the market itself could stop going down.

A word of caution.  I have not read the whole settlement.  I do not have exact details.  I have gotten my information from the newspapers.  You need to call 1-800-669-6607 to see if you or someone you know qualifies for this program.

As always, if you want more information about Maryland real estate, visit my web site at www.mymarylandcastle.com