State, Bank of America agree on program to help 11,000 Nevadans avoid foreclosure

Some 11,000 Nevadans will keep their homes and avoid foreclosure under a tentative agreement between state officials and Bank of America Corp. that was announced today.

Bank of America agreed to make loan modifications that would save Nevadans up to $219 million through reduced interest payments and, for some borrowers, reduced principal, according to the attorney general’s office. The agreement would reduce late fees up to $2.2 million and waive prepayment penalties up to $2.16 million.

Some mortgage loan rates would be cut to 3.5 percent, according to the attorney general.

The program is designed to help homeowners who obtained subprime or pay option-adjustable rate mortgages from Countrywide Financial Corp., which Bank of America acquired.