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).