Bank of America to start lowering mortgage principal

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lundsta's picture
lundsta
Status: Bronze Member (Offline)
Joined: Oct 13 2008
Posts: 89
Bank of America to start lowering mortgage principal

 

I just thought this would interest some of you. The other major banks may be forced to follow B of A's lead.

 

http://finance.yahoo.com/news/BofA-to-start-reducing-apf-93222487.html?x=0

rhare's picture
rhare
Status: Diamond Member (Offline)
Joined: Mar 30 2009
Posts: 1323
Re: Bank of America to start lowering mortgage principal

This SUCKS! Let's see, be stupid, buy a house you can't afford, get help paying for it. While those of us who pay on time don't get  a break at all. Way to reward bad behavior. 

I guess were all socialists now!

ARGGG!!

crazyhorse's picture
crazyhorse
Status: Bronze Member (Offline)
Joined: Nov 16 2008
Posts: 56
Re: Bank of America to start lowering mortgage principal

Upstanding, responsible people who follow the "rules" and provide for themselves are being systematically screwed...

V's picture
V
Status: Platinum Member (Offline)
Joined: Dec 14 2009
Posts: 849
Re: Bank of America to start lowering mortgage principal

"Upstanding, responsible people who follow the "rules" and provide for themselves are being systematically screwed..."

That is because you are not the kind of people who voted for Obama. Go get food stamps, and go work for ACORN, the world will look very different to you then.  Why you would even be happy with socialized medicine. There are now new rules.

But don't get too upset. They are lowering the principal NOT the interest. Check out an amortization schedule. most of what makes up a mortgage payment is interest until well down the line. This is the banks real interest uh I mean concern.

V

rocketgirl1's picture
rocketgirl1
Status: Silver Member (Offline)
Joined: Feb 11 2009
Posts: 230
Re: Bank of America to start lowering mortgage principal

Um, Hey guys, what about the folks who didn't do stupid things but now find their home under water because 70 to 80% of the homes around them have failed and now home values are so low that almost everyone is under water ?  Okay, now take that same "responsible person" and say they, for some reason, need to sell their home.  What do you think their options are?  Short sale?  In many state the banks can come after you for up to seven years after a short sale.  Forclosure?  Same thing.   Rent your home?  How many of us want to be landlords and watch home values fall even more but hey, at least you might avoid forclosure, for a while that is and while you thought renting your home was a good idea at the time you are likely to see rental rates continue to fall while at the same time home values continue to fall as well.  Now will you be glad you kept that home ?  This is no longer about what you think is irresponsible, it's all of us now so get a big picture view because you are all sounding like you're on a witch hunt.  Is it too soon for the inevitable Monty Python utube links?  BURN HER !!!!

So BofA is finally going to reduce principle on mortgages (Prank Of America), well, well, isn't that nice.  Interesting how this comes after the FDIC can no longer guarantee losses and Fannie Mea is demanding these large banks take back their toxic mortgages (wasn't that supposed to happen in May?)  I see another CM Report cominng.

 

lundsta's picture
lundsta
Status: Bronze Member (Offline)
Joined: Oct 13 2008
Posts: 89
Re: Bank of America to start lowering mortgage principal

Update:

 

 Below is an updated article that states a catch. The borrower has to qualify for the government program HAMP before it will consider lowering the balance. They also are only planning on setting aside 3 billion for this program.

http://www.msnbc.msn.com/id/36018628/ns/business-real_estate/

We all knew there would be a big catch.  So basically they announced loan foregiveness but no one will qualify.

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