Skip to comments.What the foreclosure settlement means for you
Posted on 02/09/2012 12:20:13 PM PST by Oldeconomybuyer
What did the mortgage lenders and loan servicers agree to do?
The banks and servicers have committed at least $17 billion to reduce principal for borrowers who 1) owe far more than their homes are worth 2) are behind on payments. The amount of principal reduction will average about $20,000 per borrower.
Another $3 billion will go toward refinancing mortgages for borrowers who are current on their payments. This will enable them to take advantage of the historic low interest rates currently available.
The banks will pay $5 billion directly to the states, the only hard money involved in the deal. Out of that fund will come payments of $1,500 to $2,000 to homeowners who lost their homes to foreclosure. Other funds will be paid to legal aid and homeowner advocacy organizations to help individuals facing foreclosure or experiencing servicer abuses.
Another $1 billion will be paid directly by Bank of America to the Federal Housing Administration to settle charges that its subsidiary, Countrywide Financial, defrauded the housing agency.
(Excerpt) Read more at money.cnn.com ...
I owe double what my home is worth, but I went with a reputable local bank as opposed to the mega-cheat banks. I suppose that means, once again, I (whitey) am being cheated out of my Uncle Bama Bucks.
0bama's "core constituents" will get another handout, and those of us who pay our bills, including our mortgages, and pay taxes will get the shaft.
It means that you can get a loan mod direct from your neighbor’s pension fund. THAT is what the AG Settlement means to you. This is from Zero Hedge:
If you do this, you are contributing to a Marxist wealth distribution by Obama and ELECTED attorney generals.
So, basically, what it means to me and my wife is... ...higher taxes.
The article contains an imbedded video featuring Eric ‘my people’ Holder with the caption, “Criminal prosecution still an option”.
Thought that was fitting, somehow...
Most Racist President EVER
How can a “settlement” divert funds to special interests that just happen to be Obama backers?
We are in the same boat.
The shiftless trash that were AWARDED mortgages as a payoff for votes just stopped paying, so our lovely government figured it was time to fawn and slobber over them with some more taxpayer money to double-down on the government committment to buy RACIST FAVOR. Us stiffs who grew up with parental example and instruction to always do the right thing, be honest, be ethical, and take responsibility got the goverments gift to us, too; THE BLOODY FINGER! What’s new about this!
It means those who need help won’t get it, those who get it will be punished for taking it and in the end the money will be gone with no one being better off except a few friends of friends.
This sucks. I know people who simply stopped paying their mortgages and started sticking the money in the bank, figuring they’d lose their homes anyhow. Now we are going to REWARD all of these LOSERS. It’s called a C-O-N-T-R-A-C-T, ya morons.
It seems that no matter what the topic, those of us who are responsible get to pay for those who aren’t, while they get break after break that they don’t deserve.
It means for honest, taxpayers who are up to date on their bills, that they will now pay higher bank fees and the federal debt they carry on their backs and on the backs of future generations will be bigger and more burdensome.
For the mortgage deadbeats, it means another reason to vote for Obama as he promises them even more freebies.
From one “I owe double what my home is worth” honkey to another. You’re correct.
I made the same mistake you did. I should have bought a house I couldn’t afford through a mega bank and fallen way behind on my mortgage payments. Then I too could have hit the Obama lottery for the criminally irresponsible.
A Freeper posted a link to an ACORN brochure, called “To Each Their Home”, or some such rot. In the text, ACORN took credit for helping people get “un-traditional” mortgages based on unemployment, public assistance, Social Security and food stamp “income”.
But, Bath-House Barry would have us think bankers were the evil ones.
OTOH for those of us who have paid off our home loans, we're totally screwed for playing the game by the rules.
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