January 7, 2011
Dylan Ratigan recaps yet another Bank of America debacle with a homeowner that took Bank of America to court and won. Bank of America collected 18 months of reduced mortgage payments and then informed the homeowner that he did not qualify.
Alan (forensic real estate) explained that this is not uncommon, as the banks collect a reduced mortgage amount in order to pay real estate taxes and insurance knowing that they intend to foreclose. Alan points out that Bank of America collects the payments to basically cover their inventory expenses while delaying the foreclosure process.
And to think former Treasury Secretary told America we would be on Red Alert if these fine banking institutions were not bailed out.