Bank of America To Kick Off A Loan Modification Party

Bank of America announced that it will begin modifying loans for distressed borrowers. The plan is touted as being a strong measure that will go a long way towards helping to curb the amount of future homes heading into foreclosure.

"The program, scheduled to start in December, will be open to distressed borrowers who signed up with Countrywide Financial between January 1, 2004 and December 31, 2007. Countrywide was acquired by Bank of America (BAC, Fortune 500) in July." - (CNNMoney.com)

If the plan is successful, there's no doubt that the adjustments will have an impact on preventing a certain percentage of foreclosures. As foreclosures begin to subside, inventory levels will begin to normalize. Housing stability should follow in line.

It's hard to deny that drastic measures need to be taken in consideration of the continuing U.S. housing decline and "depression" like economic conditions. Nonetheless, there seems to be quite a few Americans crying foul as they are keeping up with their mortgage payments and are not eligible for any such relief. Some ask, why are we being punished for paying our mortgage and not overextending beyond our financial means?

Is this a valid complaint? Will we see other banks follow suite? Perhaps it's all just a matter of perspective. Nothing seems overly fair right now.