More than 200,000 homeowners are eligible for loan modifications from Bank of America.
BofA began sending out notification letters to homeowners in North Carolina, and all over the United States, earlier this week.
In the letter, the bank states the customer will see a significant reduction in principle, and could reduce monthly payments by up to 35 percent.
The modification program is a result of the settlement reached between Bank of America, other banks and the U.S. government.
To be eligible, homeowners must: owe more on their mortgage than the home is currently worth; be at least 60 days behind payments as of January 31, 2012; and have a total monthly payment that is greater than 25 percent of their gross household income.
Local economists said the program would only help those who were a few payments behind, not those who were nearing foreclosure or desperately underwater.
Dr. John Connaughton, an economist at UNC Charlotte, also said the loan modifications are helping BofA revamp its image to investors.
"So they can say, 'This is the new BofA, this is where we're going, all the bad stuff is behind us, all the uncertainty is behind us, this is a bank that is poised to take off with the economy in the next decade,’" Connaughton said.
WSOC
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