In a REUTERS report obtained by REUTERS from Bank of America about a New “Principal Reduction” initiative to aid “Troubled” Home-owners who effectively owe more >120% of their home’s present value or are struggling with a “Negative Amortization Loan” and the effects those loan types have had on appreciated equity values and payment (s) volatility.

Bank of America will first offer an interest-free forbearance of principal offer that the affected home-owner can accept or reject and by accepting could benefit for up to 5 Years (providing the home-owner remains current on their regular scheduled payments). [This is according to Bank of America's Plan and Strategy to reach out and "work" with present Borrowers]. BofA’s plan and strategy is slated to begin in May 2010 is the first American Bank to unveil a comprehensive consumer centric program to make practical strategies and solutions available to its Borrowers directly affected by Loan Programs underwritten and approved by the Bank’s Mortgage Division and or acquired via merger or acquisition from Countrywide Financial portfolio and the many loans and various loan programs it made available to the public whilst it was actively and feverishly originating Residential Mortgage Loans for its investors and stockholder to bolster interest revenues and profits.

Bank of America has announced that it will proactively reach out its Borrower Base directly that meet the profile as a potential beneficiary of the proposed program and the offers and programs made available by the Mortgage Bank.

Now it’s probably no coincidence that the announcement from Bank of America comes just two days after Two Washington State Plaintiffs filed a law suit against Bank of America alleging that BofA was acting complacently towards other wise “qualified” prospects for Bank of America’s Loan Modification Program and that because Bank of America accepted in excess of 25 Million Dollars in Tax Payer Monies under the TARP Program [or Troubled Assets Recovery Program that became Law in 2008]. That the bank effectively “reneged” on its promise to these Borrowers and further charge Civil Culpability as a result of said negligence to “modify” the loan.

As for the thousands upon thousands of home-owners and dare I say “et-al” plaintiffs in a would-be Class Action Law Suit against Bank of America, I say… “Listen to the offer”. It may behoove you and you’re Family in terms of home-ownership retention plans and strategies and a real opportunity to recover and recuperate present and future market appreciations.  Not to mention the self capitalization benefit (s) from starting with a “clean slate” and building equity should your future plans include acquisition of a new home or even second or investment property.

All in all,  this is a positive direction amidst calls for Financial Reform in America, when an Industry Giant like Bank of America announces and makes available to  its troubled borrower base an olive branch and invitation to exchange what “we” hope is productive and open dialogue leading to an equitable and fair solution for “both” parties (thus the term equitable).  Then this is a positive step for America as it embarks on the path to a Capitalist Democracy that benefits it’s Citizens and creates a level playing field for ALL.

Needless to say… This is a HUGE break-through and has me in closing to simply say:  “Go Ahead…[Help] Yourself!” :-)