The fact that this is being proposed by the Bank of America makes it all the more suspect to me.
They were about the first to jump on the bandwagon of giving bank accounts, free transfers of funds to Mexico, and loans to illegal intruders.
With as many persons involved in a no-proof-of-income loan, from the seller’s agent to the appraisers to the title companies and the builders, it would be hard to place blame.
If we really step back from it all, I think we would find that a great number of these loans have been sold to people under 30, who think that anything and everything they WANT is the same as what they NEED. There are 2+ generations of USA children out there who are losing their homes to adjustable loans and won’t sell the $50,000 boat they use once or twice a summer, and won’t EVER think of looking at a car as something they could drive for 7-10 years instead of 24 months.
They insist they have to have plasma HD tv sets costing $5000 and all the latest and greatest sound equipment in their homes and cars. Eating out-”entertainment”-I could go on and on.
I know a couple that is in trouble with their house. She recently quit her job, and is dragging her feet trying to get another closer to home. They own a boat they spent over $30,000 on, and I think it hasn’t been in the water more than 4 times in 2 summers. She says she wants to spend time with her totally spoiled child until it goes to kindergarten half days this fall. Then she cries about having to pay $30/day for child care. I ask her if she would watch any child for 10 hours a day for $3/hour, and she is horrified at the thought. But she expects someone else to do that.
She talks about just walking away from the house and going to another part of the country and renting and “starting over”. I cannot convince her that this will follow her for a number of years, and that she may never own her own home again. There are a large number of tax deductions this couple has with their current home. I cannot get her to look at her tax return and see how much less they would have in discretionary income if they bolt.
Spoiled kids raising more spoiled kids and not having a clue why or how they got into this mess.
Adults they know have tried to help them go over their expenses and teach them how to cut down, but they reject every offer given them on the topic.
A number of folks in my 2-3 year old neighborhood are trying to sell. Most bought at inflated prices, expecting to be able to sell at a profit if they couldn’t make the payments.
Most of the folks selling make perhaps half of what I do, have multiple ATVs and motor homes, and now want to be bailed out of foreclosure.
I probably don’t sound very sympathetic.
It reminds me of my Aunt’s comment about the people who bought her farm in Indiana 40 years ago...”I hope they sell drugs on the side, because there is no way to make enough money raising corn to pay the Bank!” And a couple of years later, I started hearing about ‘Farm Aid’.
You can't cure "stupid". Bailing them out with a government rescue won't do the trick, either. They need to be confronted with and be responsible for their folly. Maybe then they'll learn, but I doubt it.
I'll bet they support either Obama or Hillary, right?