How will the National Homeownership Retention Program use earned principal forgiveness to make my mortgage payment more affordable?
The National Homeownership Retention Program (NHRP) looks at each customer’s situation and determines how we can provide you with an affordable mortgage payment. Depending on your situation, the NHRP may use principal forgiveness to do this. The NHRP may offer principal forbearance or earned principal forgiveness. Principal forbearance delays the repayment of principal. This means after demonstrating a hardship, Bank of America Home Loans will defer or postpone your mortgage payment for a period of time. For purposes of NHRP and HAMP, Bank of America Home Loans offers interest-free forbearance to qualifying borrowers for the life of the loan. At the end of the loan term or at the time the loan is paid off through sale or refinancing, any remaining forborne amount becomes due. You may also qualify for earned principal forgiveness where a portion of the debt or loan amount is waived and you are no longer responsible to pay back that amount. However, you must remain in good standing on yo
