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.
No, it means a lower IRA or 401K yield and probably a delayed retirement. After all if you can afford to retire, according to obummer, you are too wealthy and need to pay “your fair share”.
this plan is even more pathetic than cash for clunkers
‘Select, top investors received the following news. What it really means, is that there will be an avalanche of short sales.’
Can you give us the link? Don’t understand how this will cause more short sales. I thought the people who default will hang on to get the money from obozo and hope to save their home. NO?
Would it be because the banks don’t want to modify all those loans for those losers defaulters who will probably default again and the banks will be caught in the same scenario again. So they will force the homeowners to ‘short sale’, approve the short sales quickly, get back some money as quickly as possible and get those defaulters off their backs, while unloading the propereties to the new owners.
Sorry, as the information was from an e-mail list. Here’s a link to the only piece that I could find now with a mention of short sales. Short sales can lower long term costs in many cases.
[Link only. No content allowed to be posted to FR.]
Off the cuff, BTW, and short sale might sometimes be better for the sellers than a foreclosure auction.
a short sale, even.
Saw your comment #25 after replying. Yes, that’s a good explanation, although I suspect that many have the option of selling rather than being forced to do so.
It’s not even double-down anymore, guys. This is like octuple-down or more. I got myself out of revolving debt, paid off my car loan, paid off my student loans, paid out of pocket to go to graduate school, and here I sit unemployed with a mortgage, a smattering of bills, and a wedding being planned for November.
Meanwhile, the slobbering Obama masses are popping out kids like circus clowns from a VW, using food stamps to buy Kobe beef and lobster, buying lotto tickets and gambling with FEMA debit cards, and squatting in foreclosed houses while I’m struggling to find work as an engineer.
Everything, and I mean EVERYTHING, my mother and father raised me to believe and aspire to has meant nothing more than knowing that morally and ethically I’m an upright white Catholic man. I have exemplary credit, but at this point it means ZILCH. If high school dropout drug-dealing baby-making morons can get a free house, meals, and recreation money for watching American Idol and falling behind on payments to everything and everyone, somewhere there’s someone in power *coughObamacough* who is laughing at us for being morally upright.
It’s depressing, really, but I know my reward is in Heaven. I’ll continue the slog, but at some point something really does have to give. When does it give, guys? When?
And Napolitano and her goons, if you’re monitoring FR for anti-government sentiment, there’s a big middle finger and a very loud FSCK YOU going out to you and your ilk. You’ve destroyed everything it means to be right and proper in this world. Obama should rot in a solitary cell for the rest of his life, die a miserable death, and go straight to Hell for every little thing he’s done in his miserable, fake, petty life.
And take your Wookiie wife with you!