Why do homeowners facing foreclosures blame the banks? (financial, money, government)
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They would rather foreclose - so it get's bought back by federal government. Then you can sweep in (lucky you) - have a credit score of minimum of 580
buy it with minimal down - and have closing costs paid for you to start
the whole bogus GSE government involved housing industry con
all over again.
A lot of times they rather foreclose due to the fact that the property has a mortgage insurance on it in which case the lender get's the insurance money which covers the full mortgage....Nobody can say that it is stupid from a lender to think that way...that is called business!
we have an early payoff clause on our bank of america mortgage and they will not let us get rid of it without paying $7500 penalty
Exactly. That is how the banks COVERED THIER ASS.
How do you cover yours....
Ask BOA for a loan modification BEFORE YOU SELL. In your case - BOA already knows you want to sell so... chances are your loan may be already owned by Fannie Mae or Freddie Mack. Go on one of those web sites to find out and
you'd be surprised how many folks did not even know their loans were owned
by the federal government and BOA was just the holding co. not the lender
a.k.a. same scam they did with student loans.
happens all the time. In 2005 they had early payoff penalty- we paid off our mortgage in Boca and the bank illegally charged a 4k "early payoff fee" We took them to court and won. OP DO NOT assume these banks follow the law-they do NOT- they will do anything in this tanked market to screw the homeowner and get your equity.
A lot of times they rather foreclose due to the fact that the property has a mortgage insurance on it in which case the lender get's the insurance money which covers the full mortgage....Nobody can say that it is stupid from a lender to think that way...that is called business!
So why all the hoopla about homeowners walking away....
How do you cover yours....
Ask BOA for a loan modification BEFORE YOU SELL. In your case - BOA already knows you want to sell so... chances are your loan may be already owned by Fannie Mae or Freddie Mack. Go on one of those web sites to find out and
you'd be surprised how many folks did not even know their loans were owned
by the federal government and BOA was just the holding co. not the lender
a.k.a. same scam they did with student loans.
Good luck
nothing with businesses covering their ass. Do you have car insurance? Do you have homeowner/rental insurance? Do you pay unemployment insurance? You are covering your ass. Banks are businesses, they are in it to make money, not to lose money.
and no, I am not selling. No need to. That was someone else.
Some need someone else to blame. However in the case where someone has been on a job forever then suddenly loses it, i can sympathize with their plight. I know many in that situation, and it is tough and it stings, when they are let go believe me.
In the case where they bought above their means, their fault, and the loans companies, time and time again, when i was in real estate, i saw people buy above their own means, i knew it all the time. Banks and loan companies did not care even then.
Part bank Part the people buying homes they cannot afford.
And illness, or losing a job, is much different story.
There were many sub prime/bank mortgages that had early payoff penalties of 5 percent and beyond for the mortgage balance due - at payoff
if done in a 5 -7 year period of origination of original mortgage...
If you read the original post, the person stated the mortgage was 19 years old, which precludes the idea that you submitted.
yeah, balance owed. Say the property has a current market value of $500k. But he has a loan balance of $300k. Does the bank really want to let it go for $200k less?
It doesn't matter. If all that is owed is 300K, and the mortgage holder who has had the note for 19 years comes in with the payoff balance, it's paid for. Doesn't matter whether the banks wants to or not.
nothing with businesses covering their ass. Do you have car insurance? Do you have homeowner/rental insurance? Do you pay unemployment insurance? You are covering your ass. Banks are businesses, they are in it to make money, not to lose money.
and no, I am not selling. No need to. That was someone else.
I fail to see your connection e.g. rental insurance/car insurance.
Banks may be in a business to make money - not loose money. But guess
what - so are home owners/investors. No bail out for the homeowner and
only for lender (s) is exactly the reason - HOMEOWNERS SHOULD WALK
IN DROVES...IMO if they are underwater on a mortgage.
Business take risk - that includes a loss as well as a profit.
It becomes an unfair playing field, when the bank is "guaranteed against
loss" by the federal government, but the homeowner is not guaranteed
anything except a bill and a roof over their head
If you read the original post, the person stated the mortgage was 19 years old, which precludes the idea that you submitted.
Many folks during the height of the "housing boom" were bombarded with
solicitation from banks for home equity/refinance - lower interest rate
type "second mortgages" based on equity.....
Could it be that is what they had - I don't know.
I do know a lot of banks pulled this scam -
Because the price of the homes during the boom did not meet the
standard for debt/ to income ratio they would offer a first and second
mortgage (second - being normally what one would use for home improvement etc - but in this case we know that isn't what it was used for) to qualify for
a mortgage to buy the house. What the home owner didn't know - even
in a state that allowed them "to walk from a mortgage - they were legally
liable for that "second mortgage"....down the road, regardless of bank
receiving home as payback from the first loan.
Seriously, let's call what happened from 2000 - 2006 with banks exactly
what it was.
A raping of America (I call them homeowners)
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