Bank of America, as part of the national robo-signing settlement, is offering to wipe out 150,000 severely delinquent seconds liens for select customers.
The bank, in a new website posting, said it began mailing out the offers in July.
However, it warns, "The vast majority of the second-lien mortgages eligible for this program are in default in their subordinate lien position. A small number of second-lien mortgages that are paid current will be extinguished if they are associated with a first-lien mortgage that meets the program criteria."
B of A, the nation's second largest residential servicer, is telling customers the offer is part of ongoing efforts to help borrowers "in need," with the stated goal of helping them avoid foreclosure.
Only customers serviced by the bank are eligible. B of A is required to report the debt forgiveness to the Internal Revenue Service.
