Bank of America Corp. said Wednesday that it has created a pilot program in Arizona that will use money from the government's Hardest Hit Fund initiative to make interim mortgage payments and principal reductions for unemployed homeowners.
Similar programs in Nevada and California are in the works, the Charlotte, N.C., company said in a press release.
The Obama administration created the Hardest Hit Fund a year ago to provide $1.5 billion to five states that had home price declines of 20% or more. Since then, the program has expanded to 18 states and $2 billion in funding. The program offers mortgage payment assistance to the unemployed for up to 36 months.
B of A said its own customers may be eligible to have the amount owed on their mortgage reduced through matching contributions from the state and from participating mortgage investors. Bank of America has begun mailing letters to customers in those states who may qualify for the assistance based on state program and investor guidelines.
