Check out this LA Times Article but pay close attention to the below paragraph:
Out of the five major mortgage servicers — Bank of America Corp., Wells Fargo & Co., JPMorgan Chase & Co., Ally Financial and Citigroup Inc. — only Ally has formally signed on to a key part of the plan: reducing mortgage principal on homes that are “underwater,” or worth less than the size of the mortgage. A Bank of America spokesman said the bank intends to participate but hasn’t yet reached a formal agreement with the California Housing Finance Agency, which designed the program.
Read that again, MOST of the banks that have the loans in CA are NOT participating in this program. Assistance can only come when all Banks are on Board! As more information comes out, I’ll keep ya’ll posted.
Should you have any questions about anything you’ve read here, please feel free to call your favorite REALTOR 🙂