Principal reductions begin in earnest
This is an important milestone, even if it’s too little, too late:
Bank of America Home Loans has begun reaching out to customers who may be eligible for forgiveness of a portion of the principal balance on their mortgage under terms of a recent settlement…
The bank estimates average monthly savings of 30 percent on mortgage payments of customers who qualify for this program…
Bank of America actually began making principal reduction offers under the program guidelines in March, initially concentrating on homeowners who were already in the modification review process. So far under this early initiative, about 5,000 trial modification offers have been mailed, providing a potential total of more than $700 million in forgiven principal. Homeowners are required to make at least three timely payments before the modification can become permanent. Read more
What do you think? Do you know someone who has already received the letter? Please let me know at firstname.lastname@example.org
Desert Underwater: Who Owns Your Home?
LAS VEGAS — The foreclosure crisis has several causes, but government investigators now believe that high risk gambling by major banks is mostly to blame for the economic meltdown. Millions of Americans who played by the rules and paid their bills have lost their homes because banks and their service providers cranked out mountains of bogus mortgage documents.
In Nevada, tens of thousands of homeowners are in for a big surprise — they don’t really own their homes because the paper trail was corrupted from the beginning. And if the house you bought has ever been in foreclosure, there’s a strong chance you have a problem.
We’ve heard over and over how the government’s insistence that banks provide subprime loans so poor people could get mortgages is the primary cause of the meltdown. Subprime loans are a part of the problem, but only a tiny part. For the most part, the people who have lost, and are still losing their homes, did everything right and still got screwed. Read more…..
and check out this video: