Skip to comments.Bank of America forgiving mortgage loans
Posted on 05/08/2012 10:05:22 AM PDT by edcoil
Bank of America has started sending letters to thousands of homeowners in the United States, offering to forgive a portion of the principal balance on their mortgages by an average of $150,000 each.
The reduction for qualifying homeowners could amount to monthly savings of up to 35 percent on mortgage payments, Bank of America said in a news release on Monday evening.
(Excerpt) Read more at finance.yahoo.com ...
Bienvenidos a Argentina
No one paid or forgave one dime of my mortgage which I responsibly paid off. What I fool am I.
Will the taxpayers make up the difference?
"Do I really need to say it?"
Where do I apply for this?
This was sent to me by email a few days ago by someone in the banking industry who got it from a friend:
Sent: Sun, May 6, 2012 9:11 am Subject: Bank vs. America: Wednesday in Charlotte
There’s a showdown between the 99% and Bank of America next week. People are protesting at the the BofA shareholders meeting in Charlotte and at solidarity actions nationwide. There’s a protest in Charlotte at 8:15 AM. Can you make it?
RSVP for the Protest!
Dear MoveOn member,
Given recent history, Bank of America should be rebranded “Bank vs. America.”
While our economy tanked, BofA made billions in profits by dodging taxes, illegally foreclosing on homes, and squeezing customershitting communities of color especially hard.1
But this spring, tens of thousands of people were trained to fight back against Bank of America and big corporations. We know that Bank of America is susceptible to public pressureremember when they tried to hike debit fees last year?3
That’s why community leaders and activists are blending street theatre with protest to get the attention of top BofA executives and the media. BofA’s so nervous about bad publicity that the city of Charlotte will enforce a draconian protest law that allows police to search someone for having a bike helmet or magic markerbut that can’t silence the 99% in North Carolina.2
We can ratchet up the pressure on Bank of America with media attention and scrutiny by voicing our grievances at their annual meeting. We’re rallying in Charlotte on May 9 at 8:15 AM. Can you make it?
Yes, count me in for the protest!
To show Bank of America that we won’t take more of the same, May is “Move Our Money” month for the 99%. We’re withdrawing our hard-earned money and switching to community banks or credit unions instead. Big Banks stand to lose $185 BILLION over the next year because of customer defectionsand BofA is particularly vulnerable.4 Bank CEOs aren’t responsive to pleas for help from struggling homeownersbut we’ll get their attention when we put a dent in profits and a spotlight on their greed.
Can you stand up against Bank of America in Charlotte on Wednesday, May 9, at 8:15 AM?
Yes, I want to RSVP!
Thanks for all you do.
Elena, Victoria, Ryan, Wes, and the rest of the team
P.S. May is “Move Our Money” month. To learn how to move your money (or document money you’ve moved already), click here.
1. “Why Mobilize,” Unity, accessed May 3, 2012 http://theunityalliance.org/why-mobilize/
2. “Duke Energy, Bank of America shareholders meetings to fall under strict security rules crafted for Democratic National Convention,” Charlotte Business Journal, April 30, 2012 http://www.moveon.org/r?r=275098&id=40765-3616170-%3Dp6h_Xx&t=4
3. “Bank of America drops debit card fees,” USA Today, November 1, 2011 http://www.moveon.org/r?r=274792&id=40765-3616170-%3Dp6h_Xx&t=5
4. “Move Your Money: Faith Leaders, Activists To Target Wall Street Banks Throughout Month Of May; USA Today, Think Progress, May 2, 2012 http://www.moveon.org/r?r=275196&id=40765-3616170-%3Dp6h_Xx&t=6
Want to support our work? We’re entirely funded by our 7 million membersno corporate contributions, no big checks from CEOs. And our tiny staff ensures that small contributions go a long way. Chip in here.
PAID FOR BY MOVEON.ORG POLITICAL ACTION, http://pol.moveon.org/. Not authorized by any candidate or candidate’s committee.
So, if I over bought, and under paid, I get a $150k bonus, but if I was responsible, I don't.
Does the reduction become a taxable gain?
It is actually good business. Many of these homes will become bank property after they are put through costly foreclosure proceedings, subject to theft and vandalism while empty and large sales costs and price concessions.
In addition, the excess inventory in the market will tend to bring other home prices down and subject other properties to the same fate.
I bought a house I could afford and paid it off well ahead of my mortgage schedule. Man, I am a sucker.
If you felt morally responsible to keep paying for an underwater home you are a SUCKER.
The banks usually let politicos and their insider pals in on the deal and they buy the properties on the cheap and turn around and sell them at a huge profit....but you have to be in a position of power to have access.
Maybe it’s just a good business decision on their part to limit their losses. They may still come out ahead on these loans if the interest payments amount to more than the amount they are reducing the principal. Even if they lose a little it may be a better alternative than letting the loan go into default and foreclosure.
Me either. What utter fools we are, bgill.
Maybe we can get a “Free $150,000 Forgiveness Check” from BoA, and just bank it, tax-free? </s!>
HA-HA, you suckers who sacrificed to pay your bills on time are out of luck!
The grasshoppers win again.
Have you seen their recent TV ad? A whole parade of people touting the bank, and the only White guy is about as masculine as Dolly Parton. Somehow, in my mind, this sort of fits with the news posted here - but maybe that’s just my mind.
My mind certainly doesn’t think of doing business with them.
This is only one of many scams we are seeing created to buy votes for the November election. Student loans, mortgages, unions dues skimming, US Post Office payoffs...we aint seen nothin yet! They will pull out all the stops to win this election.
Guess my wife and I should stop making payments on the house we both work hard to pay for. Stupid us.
I’m still paying mine every month. I feel like a sucker.
Makes my blood boil!
This is it right here. Once anyone or any organization acquiesces and/or otherwise shows signs of weakness, the thugs become emboldened and never, ever stop.
You can't go soft on these kinds of people.
It’s good to write down the debt if it makes good business sense either tangible or intangible.
The banks should take this loss without taxpayer help. Insurer’s who have insured the mortgage should also be on the hook for the write downs.
IIRC forgiven debt is taxed as income.
The Domino principle is in effect. A rampant panic attack throughout the markets — if left on their own course would break the government. That would result in all sorts of changes to the U.S that would be very bad form of socialism.
Wow I have an underwater mortgage through BoA ... you mean to tell me if I had quit paying my mortgage around Thanksgiving I would have been rewarded by having a large part of my principle waived?
Yep. The IRS will regard that as income and tax accordingly.
While its a feel good moment for the homeowner, the homeowner will have exchanged 1 creditor for 2 creditors.
Sort of like having Godzilla knocking at the door being joined by Dracula. LOL
I didn’t, the bank did.
they’re ‘forgiving’ up to $150k ... which would reduce mortgage payments by 35% ??
wouldn’t that mean the mortgages are $450k???
wth?! they’re forgiving mortgages for people with mcmansions??
(i realize they are really just giving money from the taxpayer to those banks that helped them drive the real estate market into the dirt)
I bet lots of people feel the same!
I guess I’m a sucker too - have a mortgage from BofA, and had diligently saved enough to put 50% down. Plus, I always (always, always, always) pay on time. My property’s value is down 20%-30% from when I bought in 2008.
I don’t qualify for a principal reduction because I held up my end of the deal. However, BofA will helpfully refinance the loan at a lower rate - if I go through the same process that a non-customer and new-applicant would, including paying all application costs and closing fees. Such a deal!
Punishing responsibility and rewarding irresponsibility - the Obama way “forward”!
Well should we expect BoA stock to plummet?
After all they have just announced that millions of dollars of assets can be expected to disappear off of their books.
The opposite. They are already carrying these assets at zero.
i wonder if a gun owner would qualify.............they recently refused to do business with a company that introduced guns to their production line...
suggest we read the fine print...just sayen.
Bank of America = Bank of Obama.
Debt doesn’t go away unless it is paid off.
This is just shifting the debt around.
Eventually it will land on us hidden in the tax code somewhere.
And this is shocking, how? :)
“Yes, this is a better arrangement... More just.”
Not shocking, more like moral hazard.
It’s like making the punishment for hit and run small compared to drunk driving, or even lawsuits over accidents.
I’m afraid I will.
No freedom loving American should have anything to do with BofA.
OK. Wow. I haven't seen that movie in, years, but that is exactly what came to mind with that single still.
How come I can't remember someone's name that I met 5 mintes ago?
AVERAGE of $150K?
Hell, that would pay my mortgage off!
What a responsible fool I have been! I should have stopped my mortgage payments when I was laid off.
You are absolutely right. BOA is a good example of what happens to those who think they can bend under the pressure and survive. These thugs need to hit a brick wall in every way no matter what from day one.
All you have to do is ruin your credit rating for 7 years, and you get a deal : )
So, Bank of America wants to reward their deadbeats while their honest, responsible customers get nothing.
Tomorrow I am closing my BoA checking and savings accounts as well as my credit card.
I will do my part. Screw them.
I have resisted refinancing precisely because I don't trust what will be buried in the contract vis-a-vis "updated user agreement."
Rewards for the irresponsible!
"From each according to his ability, to each according to his needs."
I buy a new Car. I drive it off the lot and the value drops
10% as soon as the tires hit the asphalt on the public highway.
I go home and miss a few payments while I cruise around without a care in the world. The Bank sends me a letter telling me that they will forgive a third of what I owe on the car and my Payment will adjust down accordingly.