WC Varones

Don't lend your hand to raise no flag atop no ship of fools

Bank of Amerika

From each according to his ability, to each according to his need
The peoples' Bank of America has decided in this election year to forgive principal on some mortgages. Bank of America, who by using any accounting standards is insolvent, has decided to take this step letting alleged adults out of the contracts they had signed. This as part of a "settlement agreement" with 49 State Attorneys General because remember kids, when you're a bank and you break the law, you just borrow from the Fed at 0.0000% interest to purchase your innocence. Check this:
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.

The principal reduction offers from Bank of America Home Loans are the result of a $25 billion settlement agreement earlier this year with 49 state attorneys general as well as federal authorities who had been investigating allegations of abuses over the handling of foreclosures.
At some point the number of people capable of making the 20% downpayment on these horribly inflated housing prices will go to 0. Then how do you stop the bubble from bursting comrades?

2 comments:

W.C. Varones said...

At some point the number of people capable of making the 20% downpayment on these horribly inflated housing prices will go to 0. Then how do you stop the bubble from bursting comrades?

There's an app for that.

Anonymous said...

I know this kind of comment has been repeated ad infinitum, but when do the non-delinquent mortgage holders with credit scores above 750 get a $100,000 "responsibility bonus" check in the mail? Never? Fuck, carry on.

BofA's plan is a lost cause anyway. Even with massive principal reductions, instead of a buyer who can't make his payments with a LTV of 130%, they'll have a buyer who can't make his payments with a LTV of 100%. Much better.

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