posted on Jan, 18 2011 @ 08:05 AM
I think I realized why the banks don’t want to help people and are rather willing to take their houses back.
Here’s a great example:
When you bought your house, you agreed to pay 6.375% over 30 years. You bought your house for $200,000. Your payments are $1247.74 per month.
After you made your first payment, you realized you paid $1062.50 interest and ONLY $185.24 on the capital on your house.
That means you actually paid 85.15% interest on your loan. Great return on their money for the banks, horrible deal for you.
Now you own your house 10 years. Now you still pay $1247.74 per month, BUT now the bank only gets $899.75. That's a 72.11% return on their money.
After 20 years of paying your monthly $1247.74, they only get $590.55, still 47% return on their money.
Now you run into some trouble, you lost your job and can’t make the payments.
You call the bank, they say you owe more on your house than it’s worth.
They don’t want to help and after numerous calls, they keep telling you to rather give the keys back and foreclose on your house.... they say it's
your only option...
They do it for the money people…
They know they may take a loss now, BUT they sell the property to someone else, slap a 30 year mortgage on there and get themselves right back up in
the +80% return for their money.
All the bail-out money they received isn’t helping. They are keeping most and only help a few people here and there to save face….