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Did you see the the article on Bofa, the are reducing balance for subprime and option arm underwater mortgages if they are 60 days plus behind. I guessing if there is anyone out there who is still paying there underwater mortgages and if they have Bofa then they will stop paying immediately.
I knew when I bought I should have put 3% down and should have selected Bofa or Citi, I figure they would eventually write down the balance. Just think if two people live in the same area and one of them put 20% down and loss their down payment because real estate has decline and are still making your payments, then no one cares. But if you put 3% down and stop making your payments, they will reduce your balance.
Now I understand why more loans are being written today with only 3.5% down.
Just thought you should know that just because they say that they will do this does not mean it will definitely be done.
I have been promised so many things and all sorts of assistance since I had developed medical problems and my entire family was injured in a car accident last year....to date, all I have heard are promises of help and now I am losing my house. I hear about all these other people who are getting all these breaks but when I ask about them, the representatives at the home loan departments don't even know what I am talking about.
And it sucks when you have to waste 2-4 hours of your minutes being put on hold or being transferred to 4-5 different departments because no one seems to know what they are doing or what is going on.
If this new option is available, then I would like to see it happen because I am tired of them advertising all these "relief" options and then not even following through or understanding what their process is to get it done.
Bank of America got a 48 hour jump on the President's program.....if you read they article, they have to meet the condition of the Federal program......Sorry, but I am not impressed, they are only helping those that obtained a preditory mortgage (PayOption or No Doc) mortgage. Big deal. Once again, their is a huge flaw with this program that this administration just does not get - you have to be 90 days late on your mortgage. (BofA says 60 days, but it takes them 30 days to return a phone call). I'm sorry, but if you are 90 days late, chances are high you're on the way to lose your home. There's a reason only 50% of those in trial modifications, fail.
There is something seriously wrong when we incentivize poor behavior.
As a former big box bank employee, I am not impressed.
If you've read the details of the plan, you'd know it's all voluntary for the banks to participate, the incentives for the bank are trivial, and there are so many escape clauses for them that few, if any, will actually qualify let alone get a principal reduction.
However, you can be assured that this will boost strategic defaults to BofA as well as across the board substantially.
As Brandon said, this is all smoke and mirrors. Much like the utter failure that Hope to Homeowners has already been, this will be the same.
I saw an article in the NY Times last November entitled: "Wallstreet finds profits by reducing mortgages;" (google it.) It outlined a new mortgage deal that some hedge fund investors were planning on rolling out that would forgive ALL of your negative equity--and--give you 10% positive equity to start your new loan out with.
Last month my boyfriend's soon-to-be son-in-law found a hedge fund that was doing this. He had got the tip from two other people that had already started the loan process with this company. So since my boyfriend was severely underwater ($200,000) he and I checked into it and decided to apply for the loan too. It takes about 120 days for the loan to go through. It's possible that one could be rejected after the loan process has started; you won't know until the end. So we're about 25 days into the 120 wait.
This company is in Sacramento, however I came across another company in Arizona that's doing the same thing. They have a simple explanation of how it works and why they would be willing to do this for underwater homeowners. It's because THEY WILL MAKE BIG MONEY doing it! (Do you think the banksters would give us a bone if they didn't stand to profit handsomely?)
Anyway, here's the headline of the article that explains the process: "There is a new principal reduction program for underwater homeowners." Google it! You might qualify for the loan. Email me if you'd like more info from me: jennerclay@aol.com (Debbie)
Did you see the the article on Bofa, the are reducing balance for subprime and option arm underwater mortgages if they are 60 days plus behind. I guessing if there is anyone out there who is still paying there underwater mortgages and if they have Bofa then they will stop paying immediately.
I knew when I bought I should have put 3% down and should have selected Bofa or Citi, I figure they would eventually write down the balance. Just think if two people live in the same area and one of them put 20% down and loss their down payment because real estate has decline and are still making your payments, then no one cares. But if you put 3% down and stop making your payments, they will reduce your balance.
Now I understand why more loans are being written today with only 3.5% down.
i've no problem with the banks doing this of their own free will. that would be similar to the measures banks took with farmers in new zealand when the govt withdrew farm subsidies. unlike our govt, the nz govt had the balls to stand up to the banks and refused to underwrite farm loans. the result was that the banks were forced by the market to make concessions.
in the states the govt just put the banks on welfare. now they can hold on to as much vacant real estate as they want. they can continue to drive more people into foreclosure with their extortionate penalty fees safe in the knowlege that bankruptcy rules do not apply to them.
if the banks were not bailed out they would have to be a little more accommodating or closed down
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Not as easy as it seems
I must of missed that in the MSM.
