"Our Children and Grandchildren are not merely statistics towards which we can be indifferent" JFK

Wednesday, March 24, 2010

Bank of America's New Forgivness Plan

As reported by Diana Olick, Bank of America is changing their game plan on delinquent mortgages. The existing client must owe at least 120% of the current home value and be delinquent for 60+ days. Bank of America will forgive up to 30% of the principal as they target subprime, pay option and prime 2 year ARM's.

Bank of America has over 1 million delinquent loans and the estimated hit to their balance sheet will likely come in around $3 billion as they will need to write down the value of their existing mortgage book.

Anticipated program revisions for those who put down 10 to 20%, did not yank equity to purchase the boat and other play toys, and are current on the mortgage (even though the payment is coming from the savings account): NADDA, ZIPPO, NOTHING, ZILCH!

This is the New World Order….rewarding responsible behavior is so old school!

Welcome to America’s SEPTIC Program (Someone Else Pays Till I Can).

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