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BOA to forgive mortgage debt around $150,000 for each home.

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posted on May, 8 2012 @ 02:39 PM
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Bank of America has started sending letters to thousands of homeowners in the United States, offering to forgive a portion of the principal balance on their mortgages by an average of $150,000 each.


finance.yahoo.com...

What about all the decent folk who are struggling month to month just to pay off their mortgage? These families should get reduced interest or year-end-cash-back or SOMETHING for being loyal.

What if everyone in the whole country just stopped paying their mortgage; could banks potentially have the whole country roaming the streets? Iceland forgave all mortgage and credit card debt...

I'm not one to blame George Bush for everything, since he wasn't ever my president, but didn't he approve the whole Sub-Prime mortgage fiasco?




posted on May, 8 2012 @ 02:41 PM
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Hope wells Fargo follows suit....



posted on May, 8 2012 @ 02:45 PM
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reply to post by CALGARIAN
 


If I remember correctly, it also had to do with Clinton's deregulation. There are a few to blame in this case....



posted on May, 8 2012 @ 02:46 PM
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The bank is making itself look good in this case. What they are really saying, is that by forgiving an average of 150k, still leaves them with more money than if they auctioned it off. The market hasn't come back as fast as they were hoping...



posted on May, 8 2012 @ 02:49 PM
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So let me get this right....if I had failed to make payments for at least 60 days I could have qualified? Wow that's messed up. The problem here is while sure this will help many but most STILL DON"T HAVE JOBS! So long term this will not help. Maybe one of the criteria's is to show they have a job but I live paycheck to paycheck and I pay my mortgage on time every month. A 35% savings would save me potentially $300-$400/mo which would be huge. Damn wonder if it's too late to not make my pmts for a few months



posted on May, 8 2012 @ 02:52 PM
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Wow, and here I was being stupid and not buying a house because I couldn't afford it.



posted on May, 8 2012 @ 02:56 PM
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reply to post by CALGARIAN
 


A huge thanks for posting this.

I'm still awaiting the results of my mortgage investigation, so this news has raised my spirits.

Regarding the homeowners that are up to date on their payments, they're still getting screwed and should have their principles reduced as well. As I see it, maybe BOA is taking care of the homeowners who are in the thick of it first, then those who are just keeping their heads above water, then finally modifying the rest at the beginning of next year. One can hope and we all need to stay abreast of this situation.



posted on May, 8 2012 @ 02:59 PM
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I hope people can separate this issue a little bit, for our own good. We must stick together.


While this is totally unfair, seeing how the whole system is flawed but I hope the people that are not struggling can still see the bigger picture. Do not be mad at the people be mad at the banks. It is not those that are struggling that is causing all of this. Those that are not struggling still need to stand beside those that are struggling.

No matter what happens, BOA does not have the peoples best interest in mind and at the end of the day, whether you can make the payments or not, BOA will still screw you over at every opportunity.



posted on May, 8 2012 @ 02:59 PM
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This is one of those "too good to be true" scenarios.

If they forgive up to $150,000 off your mortgage, you WILL BE TAXED on $150,000 as "income received" in that tax year. Portions of debts that are "forgiven" are considered income to the United States government.

You will not be ahead financially if you accept this, and will be taxed at the maximum rate.

This is probably another cooked-up government scheme to generate more tax dollars, and most people would be blissfully unaware until the IRS comes back at them with a humongous tax bill that they cannot pay. So, either you pay it, or they take all your stuff and/or put you in jail.

This "settlement' is not the same as B of A actually paying money. It actually is a windfall for them, as they reduce the $ amount of toxic assets, and prevent further foreclosures that they don't have the paperwork on to legally foreclose upon in the first place.

Sneaky and sleazy, coming to you in the form of a Trojan Horse with golden coins for eyes.



posted on May, 8 2012 @ 02:59 PM
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Wayyyy too little, way too late in the game.

This should of been done 1-2 years after the bubble burst in 08.

Its been tooo long to help anyone that really needs it.

thejakesobserver.com...

Theres more legit sites, but this is all i can find for the time i have at the moment.



posted on May, 8 2012 @ 03:02 PM
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Interesting...seeing how they did get "Billions" of dollars in bail out money...they were actually double dipping by continuing to collect payments on "toxic assets" they had been tax payer re-reimbursed for...

only right that at least some tax payers get something out of the bail-outs...

Just saying.



posted on May, 8 2012 @ 03:06 PM
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Count me in!
If they treat me like the government does GE they can just direct deposit the $50,000 in my account.
This sounds too good to be true or is this another bailout for the moderately rich?



posted on May, 8 2012 @ 03:10 PM
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Originally posted by CALGARIAN



I'm not one to blame George Bush for everything, since he wasn't ever my president, but didn't he approve the whole Sub-Prime mortgage fiasco?



Actually, no. George Bush is to blame for the Orwellian police state and the loss of your Constitutionally granted rights. Different issue.

Clinton is actually to blame and the democrats in Congress during his tenure. They first repealed Glass-Steagall (sp?) which built a big wall between investment houses and Savings & Loans. This way no S&L could sell itself bogus investments and distribute them to investors. OOps! Then blustering Bahney Fwank threatened the banks with punitive legislation and discrimination lawsuits under Clinton's Community Reinvestment Act and Affordable Housing Act because not enough low income minorities were being approved for mortgages. As a result, banks were forced to issue risky mortgages - mortgages that they declared at the time were terrible to issue and couldn't be adequately underwritten.

You are seeing the results today.



posted on May, 8 2012 @ 03:11 PM
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I agree with this. Everyone from appraisers to realtors to contractors to mortgage brokers to banks acted to falsely jack up home prices at the expense of the middle class. Then securities swindlers made it all go *poof^.

Why not let the ones holding the bag catch a break?



posted on May, 8 2012 @ 03:11 PM
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reply to post by FissionSurplus
 


Good points, but let's also not forget that this would be a huge tax write off for BOA since this would be considered charity.

If this is done for me, I'm living free and clear because my concrete block house is only worth $34,500, which is ridiculous because I have a nice piece of land (1/3 of an acre) within walking distance to stores, downtown, and woodlands.



posted on May, 8 2012 @ 03:15 PM
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Originally posted by Afterthought
reply to post by FissionSurplus
 


Good points, but let's also not forget that this would be a huge tax write off for BOA since this would be considered charity.


Actually, I think they would be better served as claiming it as a business loss. I think that works a little better for them come tax time.



posted on May, 8 2012 @ 03:18 PM
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reply to post by Skewed
 


You may be right.
I was just basing my thoughts on how hospitals write off large debts as charity.

The bottom line here is that they're trying to gain the confidence of their investors and increase the value of their stock (Is it still at $5?). I'm also wondering which homes they're going to write off and which homeowners are going to be provided the offer of having all their debt forgiven as long as they agree to pay BOA rent.
edit on 8-5-2012 by Afterthought because: (no reason given)



posted on May, 8 2012 @ 03:46 PM
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Originally posted by CALGARIAN



Bank of America has started sending letters to thousands of homeowners in the United States, offering to forgive a portion of the principal balance on their mortgages by an average of $150,000 each.


finance.yahoo.com...

What about all the decent folk who are struggling month to month just to pay off their mortgage? These families should get reduced interest or year-end-cash-back or SOMETHING for being loyal.

What if everyone in the whole country just stopped paying their mortgage; could banks potentially have the whole country roaming the streets? Iceland forgave all mortgage and credit card debt...

I'm not one to blame George Bush for everything, since he wasn't ever my president, but didn't he approve the whole Sub-Prime mortgage fiasco?



This is a clear example of mis-information propagated on the internet. NO -- GW BUSH did NOT have anything to do with this approval. He was not even in office when it was signed. It was done by BILL CLINTON.

Quite the opposite in fact. GW Bush tried to put a stop to it, but the democratic congress would see nothing of it.




In 2003, Bush's Treasury secretary, John Snow, proposed what the New York Times called "the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago." Did Democrats in Congress welcome it? Hardly.

"I do not think we are facing any kind of a crisis," declared Rep. Barney Frank, D-Mass., in a response typical of those who viewed Fannie and Freddie as a party patronage machine that the GOP was trying to dismantle. "If it ain't broke, don't fix it," added Sen. Thomas Carper, D-Del.

Unfortunately, it was broke.

In November 2003, just two months after Frank's remarks, Bush's top economist, Gregory Mankiw, warned: "The enormous size of the mortgage-backed securities market means that any problems at the GSEs matter for the financial system as a whole." He too proposed reforms, and they too went nowhere.

In the next two years, a parade of White House officials traipsed to Capitol Hill, calling repeatedly for GSE reform. They were ignored. Even after several multibillion-dollar accounting errors by Fannie and Freddie, Congress put off reforms.


SOURCE



posted on May, 8 2012 @ 03:53 PM
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I owe less on my house than most people owe on a used car. Yet, my husband's been unemployed for over a year now and savings are running low and we're scared - and none of this will probably help us a bit.
We tried to get a loan and they wouldn't even give us one with good credit. We know they want our house - it's just about paid for and they COULD make money off of it.
edit on 8-5-2012 by hadriana because: (no reason given)



posted on May, 8 2012 @ 04:18 PM
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According to this: articles.baltimoresun.com...

Wells Fargo is sending rate reduction letters.

And I didn't get one. I knew it. lol
edit on 8-5-2012 by hadriana because: (no reason given)



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