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Bank of America to forgive mortgage principal for troubled borrowers

Associated Press reports that Bank of America Corp. is giving some real relief to borrowers on the brink of foreclosure.

"The bank, the largest mortgage servicer in the country, said Wednesday it will forgive up to 30 percent of some customers' total mortgage balance. The homeowners must have missed at least two months of mortgage payments and owe at least 20 percent more than their home is currently worth.

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"The plan is the newest provision of an agreement the Charlotte, N.C.-based bank reached 18 months ago with state attorneys general to settle charges over high-risk loans made by Countrywide Financial Corp."

This was Bank of America's attempt to put its legal troubles behind, but AP says other lenders may follow.

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