The program is limited to Bank of America customers who are at least 60 days overdue on payments, who can demonstrate that a financial hardship prevents them from making payments at the current level, and whose loan balance is at least 120% of the estimated home value. The bank estimated that 45,000 customers will qualify for the relief. Bank of America will not reduce balances below 100% of the home's value.

The move makes Bank of America one of the first major loan servicers to incorporate the controversial loan modification technique. A growing number of borrowers already receiving help are still defaulting on their loans, making it necessary to try other strategies to help keep them in their homes if at all possible.