The Chief Executive officer for Bank of America has stated that for some customer it will be almost impossible to be able to stop their home from going into foreclosure. He went on to state that even though customer's are receiving help from the lender they are still in a situation where they could face foreclosure. Many of the major lenders are being investigated due to all the fraudulent accusations that are being made against them when dealing with foreclosure proceedings. Regulators feel that the major banks should have to pay a 20 billion dollar penalty, and reduce the principal balance for homeowners who are upside down on their mortgage. The CEO's of the major banks do not feel that principle reduction is the answer for this problem. They feel that it is not right to reduce principal balances on homeowners who are late on their mortgage. They say that it not fair to the homeowners who pay their mortgage on time and do not receive a reduction in principal.
