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 ...
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.
http://www.bloomberg.com/news/2012-02-09/foreclosure-deal-to-spur-new-wave-of-u-s-home-seizures-help-heal-market.html
[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!
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