...but Bank of America is nothing more than a zombie bank. They get no sympathy from me.
I don't recall Bank of America ever asking for sympathy from anyone.
Zombie bank, eh? How is it that the new workaholic CEO has started right-sizing the ship and the bank is now turning a profit every quarter? The
only Zombie at Bank of America is their acquisition of Countrywide Mortgage. The rest of the bank is quite healthy.
In the middle of October, 2011, BOA moved some of their derivatives exposure over to their INSURED DEPOSIT SIDE.
Done with the blessing of the Federal Reserve, and no different than all the other mega-banks, including Chase. This was done months ago, and the sky
is still not falling. In fact, our banking system is healthier now more than ever, and banks are flush with liquidity.
If you have your money in a big national bank, YOU ARE THE PROBLEM!
Let me translate. If you are a consumer, and offer little of value or profitability to your banking institution, then you belong at a credit union.
If you are a Fortune 500 company, with billions of dollars in deposits, there is a high probability that you bank with one of the Big 5 mega-banks in
some form or capacity. After all, it is only the big banks that have the specialists, knowledge, and sophisticated bank resources to meet the needs
of the Fortune 500. Unfortunately, your po-dunk small mom and pop credit unions don't cut the mustard.
The bank has a lien against my house. They can claim the house if I reneged on any loan on that line of credit.
Depends on who holds the first mortgage. If it is Bank of America, then they have a 1st lien position on the original mortgage. If another bank
holds the original mortgage, then that bank is in a 1st lien position, and the Home Equity Line of Credit would have a 2nd lien held by Bank of
America. In such a case, Bank of America would be subordinate to the first lienholder, a relatively risky place to be.
I will have the original mortgage loan completely paid off in only a few years meaning the only debt I have on the house is less than 40% of the total
Key words: In a few years. The bank cannot read your mind. For all they know, you may leverage the house to the hilt and never pay off the original
mortgage. After all that's what 95% of Americans do - refinance every few years to the maximum amount possible.
Bank of America is probably sending out letters to everyone due to their own internal problems.
Doubtful. They told you why they sent you the letter. House prices are falling in your local area. They even gave you an opportunity to contest
their reasoning. This could be done cheaply by getting a Market Value Opinion from a local Real Estate Broker for less than $75 in most parts of the
country. Or, spend $250 and get a full blown appraisal. Heck, look up your housing values on Zillow.com for free.
It's not up to the bank to prove to you the value of your house. Based on their market knowledge of your neighborhood, they aren't convinced. And
I am certain that they are intimately familiar with the number of foreclosures in your vicinity.
House prices have gone up in my area.
Doubtful. The housing market is ready to take a double dip downwards when more of these Interest-Only loans reset in the months ahead. The housing
market is still very unstable right now. Again, if you really believe that your house has strong market value, get an appraisal or Market Value
Opinion and prove your case.
Anyway I think they are being stupid and I won't be doing business with them after a few years when my home is completely paid off.
Banks don't care what you think. They care about facts, and protecting themselves from losses on toxic real estate rapidly losing value. All they
are doing is protecting themselves like any other good business would do.
Someone suggested the bank is probably reducing credit lines for people who haven't been using the credit line any time recently.
Correct. If you don't use the Line, then the bank doesn't earn any interest. Instead, they have a liability on the books, and no corresponding fee
or interest income. Sounds like a pretty easy business decision for the bank, don't you agree? Cut your liabilities if you aren't earning any
revenue. That's what all good businesses do. Sounds to me like they are making sound business decisions.
A girl from corporate called me up and offered to raise my credit line to get a lower interest rate when I was first getting the line set up.
Sure, back in the loosey-goosey days of Countrywide, if you had a pulse they would give you a higher credit limit. Those days are long over, my