BOA offers principal reductions on Mortgages

    Posted by matt on 8th of May 2012 at 01:01 pm

     

    Bank of America Offers Principal Reductions to 200,000 Homeowners

    Well isn't that nice, I sure hope that they also reduce my principal as a good gesture for being responsible and paying my mortgage and not buying a house I couldn't afford or buying at the top in 2006.  I bought a house last Nov for example.  

    I hate principal reductions, at the very least, I hope there are some kind of strings attached for the future i.e. for example if they were to sell the house say 5 - 10 years later for a profit, the amount reduced from the profits should be deducted

    Strings attached, Matt?  What a

    Posted by RichieD on 8th of May 2012 at 03:18 pm

    Strings attached, Matt?  What a novel idea.  Why would the banks feel obligated to set a precedent when our government refuses to follow such sensible advice.  After all, no demands for a share of future profits (or interest) were insisted upon when bailing out Goldman Sachs et all.  Best deal we negotiated was a return of capital...if that.  Could've easily demanded 50% of all future profits in exchange for the lifeline they were thrown.   

    BOA mortgages

    Posted by kc on 8th of May 2012 at 01:21 pm

    I'm sure you're aware the banks have been doing this for sometime now. However; in order to qualify the mortgagee has to be 3 months behind in payments.So anyone who's current is not eligible. In BOA's case, this is an attempt to clear out all the garbage they bought from Angelo Mazzillo/ Countrywide. Pathetic... This is like telling people to stop paying your mortgage and you'll be rewarded.

    Agree wholeheartedly with your point

    Posted by RichieD on 8th of May 2012 at 03:02 pm

    Agree wholeheartedly with your point of view, KC.  Simply inconceivable!!  I can imagine reducing the interest rate on a mortgage in certain circumstances, but reduce the principal owed without payment??!?  I'm speechless.  You're right: this will encourage those who may be borderline to simply stop making payments.  Nice deal if you can get it.

    As for the rest of us: The only way our principal is reduced is by us continuing to MAKE our monthly payments.  Talk about a mixed up world. 

    The loan must be currently

    Posted by smoothy on 8th of May 2012 at 03:32 pm

    The loan must be currently in default. You can't convert to deadbeat now..it's too late. It's a sick world we live in today mates.

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