Should banks forgive mortgage principal?
Do you think other banks should adopt Bank of America’s new plan to help homeowners avoid foreclosure.
Bank of America, the largest mortgage servicer in the country, said Wednesday it will forgive up to 30 percent of some customers’ total mortgage balances, Associated Press reports. The homeowners must have missed at least two months of mortgage payments and owe at least 20 percent more than their home is currently worth.
Although the motivation for Bank of America’s announcement was to resolve legal problems, it has the potential of putting pressure on other banks to also forgive principal on loans that are in danger of failing, AP writes.
Up until now, nearly all mortgage relief programs have avoided forgiving the principal owed.
Do you think this new approach will work? Should it be expanded?
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88 comments Add your comment
TnGelding
March 25th, 2010
9:43 am
Sure, it will work for many, but it shouldn’t be necessary. Just adjusting the interest rate should suffice for most. True, they would still be under water, but eventually the homes will regain value. And the owners probably couldn’t live any cheaper anywhere else. They made their beds, let them sleep in them. A lesson hard learned.
JD
March 25th, 2010
1:11 pm
No. It’s just people that were irresponsible. Why reward irresponsible behavior? You watch TV and its all about showing out like those idiot Atlanta housewives. They don’t have any real money – all they have is debt and now the bill collector is coming.
oldtimer
March 25th, 2010
1:14 pm
Yes, if it helps homeowners and does not kill the bank…It is everyone’s interest to keep people in their homes and have them pay as they can and if they sell later and values have gained something could be worked out. As neighborhoods improve because of fewer foreclosures all should be winners.
AH
March 25th, 2010
1:14 pm
WHAT THE F:$*%$& if you enter into a contract you are responsible for that contract. If you can’t hold your end of the bargain up you should keep all the benefits. Let people fail, let companies fail.
Until we do this no one will succeed.
Bill from Cobb
March 25th, 2010
1:15 pm
I guess owning a home has become a human right just as health- care. I think we should provide cell phones, cable tv, lawn care, and fake boobs too. After all why should anyone have to work.
The same dead beats that are for this are also the ones for health-care. Obama should change his name to Robin Hood.
CEB
March 25th, 2010
1:15 pm
Makes me feel like a sap for paying my bills
Rufio
March 25th, 2010
1:17 pm
No, I don’t believe they should drop principal at first. They should look at the whole loan and get rid of all fees (late,attorney, inspection, paperwork,etc.). They should cut the past due interest in half and add it to the principal A new note should be cast and it should be interest only for 4 years. After 4 years, it can rolled into a new 30 -40 year note. The first payment is not due for 6 months. If they can’t get a plan together in 6 months then they have to put the house up for sale. No sale in 6 months…..Foreclose……..
No one should live for free…..However, these are hard times and foreclosures helps no one at this point.
DM
March 25th, 2010
1:19 pm
I agree with CEB! I feel for those hard working people who, at no fault of their own, lost their jobs and got into finacial trouble. I think if the banks are going to help, they need to help ALL. I struggle to pay my bills with this rough economy. I have had a major pay cut and had to find creative ways to pay my bills. Help me!!!!
BIll T.
March 25th, 2010
1:21 pm
While this is clearly a public relations ploy to avert some legal problems that Bank of America is trying to extricate themselves from…It can be good for “in-over-their-heads” homeowners. Kinda frustrating though….after making monthly payments (on time) and scrimping and saving for many years we finally paid off our mortgage with Bank of America. Do I get a “free pass go” check in the mail too?
A CONSERVATIVE--
March 25th, 2010
1:22 pm
NO….NO…NO…..THE BANK WILL NOT EAT THE LOSS…….OTHER DEPOSITORS WILL SUFFER…..& TAKE THE HIT.
Jeff in Roswell
March 25th, 2010
1:23 pm
Why do people continually get rewarded for bad choices and behavior?
Rana Cash
March 25th, 2010
1:25 pm
For a related AJC story, I’m looking for people who’ve kept the credit card payments current, but have missed mortgage payments. If that’s you, please email rcash@ajc.com. Thanks, Rana
Good question, Henry.
Linda Lee
March 25th, 2010
1:25 pm
to TNGelding who said “They made their beds, let them sleep in them. A lesson hard learned.”
Some of us struggling to keep our homes out of foreclosure are not careless “bed-makers.” Many homes are now in danger due to job loss and drastic income reduction. We did NOT buy more home than we could afford; in fact we bought a lesser home.
My husband is a homebuilder. 27% of construction workers are now unemployed. Many, like us, have been unable to find work for over a year and have cut every imaginable expense in order to scrape enough money together every month to make a mortgage payment.
Don’t judge or make an overall assumption until you have walked a mile in the shoes of someone trying to save their home.
ugaaccountant
March 25th, 2010
1:26 pm
It does make business sense to explore this, although not as an across the board situation. This is extremely tricky, as many people would love to take advantage of the situation. It will require serious research on each and ever loan modification. But it can be done, just like if someone was looking into a refinance deal or whatever. Banks should be willing to negotiate in good faith. Getting most of their loan back is better than holding yet another foreclosed home.
Holiday
March 25th, 2010
1:27 pm
Bill,
We are already paying for people to get free cell phones. If anyone is on welfare, food stamps or section 8, they qualify for a free cell phone with 68 minutes per month! Go to http://www.safelink.com…..it never stops!
Mary
March 25th, 2010
1:30 pm
I’ve never missed a mortgage payment and we definitely bought much less house than we could afford. When we bought, we thought about things like job loss in order to keep our payments affordable.
Having said that, I don’t have a problem with banks doing what they can do to keep people in their homes and making payments. So many people are out of work. And so many others were hoodwinked into buying homes they really couldn’t afford. The industry took advantage of the dumb and the greedy when it came to home loans. Even the dumb and greedy need a roof over their heads.
David S
March 25th, 2010
1:34 pm
Nobody’s reducing my principle. These banks are only able to do this because money is being stolen from everyone else to give to these banks so they can do this. That is what the bank bailout money was. They are not doing this out of the goodness of their hearts.
Frankly, most of these people should walk away from their houses and let the banks foreclose. They couldn’t afford these houses in the first place and they STILL CANNOT. Home ownership is not a right. Everyone can find a place to live. It doesn’t have to be a home that you own. Blame the media, the government, and most especially the democrats for getting people to believe that they should own a home. It is not for everyone. Especially not those who don’t have any money left or can’t save enough to keep the lawn mowed, the house painted, the roof maintained, etc.
sucker
March 25th, 2010
1:35 pm
Just call me a sucker for paying my bills and buying a house I can afford…..
Pat
March 25th, 2010
1:36 pm
This does sound like a good idea, but what about the people who are working, budgeting their finances, and cutting back on a lot of stuff. I have paid all my bills on time, but am I going to get help. NO!!!!! Due to less income coming into my household, I am struggling to make ends meet. Since I was able to purchase a home that I could afford, even in tough times, am I getting assistance, NO!!!!!!.
This just wants to me stop paying my house bill so I can pay cheaper later.
Myopinion
March 25th, 2010
1:37 pm
I think it needs to be a matter of did they buy a house they could afford and then lost their job or did they buy above their heads and then when values went up they took out a home-equity loan to buy toys. Each case needs to be looked at to see if the banks are helping those who did make good choices.
JD
March 25th, 2010
1:42 pm
If you do things the “right” way, why are you penalized in this world? Sometimes I think it were better to be a bum. No material possessions and just walk the earth with no shoes.
Michael
March 25th, 2010
1:45 pm
If they are going to reduce principal for some, they should be forced to reduce it for all. Why should the morons who bought houses they truly couldnt afford be given break, while those of us who purchased responsibly – but are now on hard times due to work-related situations – have to pay off our full loans.
Either help EVERYONE or help NO ONE.
Then again, this is what his holiness Obama wants – economic warfare.
World Be Free
March 25th, 2010
1:48 pm
Guess who is going to end up paying for this? Those of us who are responsible. This is like giving credit card relief for those who overspent on their cards.
Give relieve to people who lost their jobs or had an uncontrolable family crisis.
BuckheadBill
March 25th, 2010
1:50 pm
Sure—-BOA can give away their money because they know they’re “too big to fail” Obama will bail them out if they run short and have to cut bonus’ to CEO. The Obama administration has opened a can of worms and they are slowly eating our country. How sad.
shaniqua w.
March 25th, 2010
1:50 pm
they should only forgive african americans we been scruggling for way too long. thanks u obama.
Cher
March 25th, 2010
1:51 pm
We should miss two mortgage payments and get our mortgage reduced, too! Why should we be honest, hard-working people? It doesn’t pay. This country is destroying work ethic amongst Americans…..just like Obama and the Dems want.
Cammi317
March 25th, 2010
1:53 pm
Wow there are some really blissfully ignorant and mean-spirited people posting on here. Unemployment is at a record high because so many people have been laid off. Do you think that those families should lose their homes because they had to take on lower paying jobs or are currently collecting unemployment? Many things have happened leading up to this housing crisis and it is not all from people knowingly biting off more than they could chew. What would you do if your company laid you off tomorrow and you could not find another job? I am employed, but my home lost $40,000 in value this year and I am now upside down and could not refinance if I wanted to do so. Sh** happens.
sladersaan
March 25th, 2010
1:56 pm
Can I get a rebate for being responsible?
Tyrone
March 25th, 2010
1:58 pm
It’s the white mans fault. He be the one that tricked me intos buying my house.
Joel
March 25th, 2010
1:59 pm
I bet these people who are getting foreclosed on for the most part still have cable, cell phones, new shoes, etc.
Furious
March 25th, 2010
2:00 pm
@Tyrone – It’s not the white man’s fault you aren’t intelligent enough to read a contract. Blame that on your parents.
aquarius
March 25th, 2010
2:00 pm
Here we go again. People who try to be responsible get the shaft. Irresponsible people get a reward. What’s next? A helping hand with car payments for those who bought a car they couldn’t afford??
rtayl1
March 25th, 2010
2:03 pm
Any bank that received bailout money should be made to forgive the loans. If they do not the banks are truly getting over. They will eventually make a 300% profit. The bailout money, the house they will resale and the original mortgage that the foreclosed owner still have to payoff to get it off their credit.
Joquita
March 25th, 2010
2:05 pm
We needsa a bailz out likes de onez from Wall Stretz where they bailed dem white boys out. They needs to bail us outs to. Its Racist!
Rob
March 25th, 2010
2:05 pm
So let me understand this correctly. If I have paid the bank as I was SUPPOSED to do then I get not break. But if I failed to live up to my end of the loan, paying monthly, then you’ll give me a reduction.
When will those of us who do the right thing get rewarded?
commoncents
March 25th, 2010
2:07 pm
JD @ 1:42 – Shoes will now be partially subsidized for you and anyone that is in your position. Should you choose to not take advantage of the new lower price, The gov’t will be forced to lower the price more, at whatever cost to the rest of us is necessary. Should you still choose to do nothing about it and go shoe-less, shoes will be free and become mandated; failure to wear shoes will result in jail time and a free cell phone.
B
March 25th, 2010
2:08 pm
It’s time to stop rewarding bad behavior all around. These people eneterd into a contract and LEGALLY owe the money. They are victims of their own greed and stupidity.
Common Atlantan
March 25th, 2010
2:08 pm
I hate Monday’s!!!!!!!!!!
disgruntled
March 25th, 2010
2:08 pm
I see excuses as to why it is a good idea and it makes me sick. Nothing is guarenteed in life except death and taxes. ANYONE at ANYTIME could, get sick, loose their job, own a house that plummets in value. These are just some of the risks EVERYONE faces EVERYDAY and you should be responsible in ALL of the decisions in your life, and plan on how to take care of yourself and your family when faced with troubled times. If BOA wants to forgive principal they should offer it to ALL of their customers, this decision will only alienate their good customers and cause them to leave. As long as this is still a free country they can make whatever decision they want. I have 6 accounts with BOA 3 checking and 2 savings as well as a credit card without a balance and I will be closing all of them within the next day or two because I so strongly disagree with their decision.
MH
March 25th, 2010
2:09 pm
@ Linda Lee While I won’t ask you all the dirty details on how you got there in the first place, many of us are not going to have sympathy for your plight regardless of what you tell us. Sorry. I know for a fact that many banks are looking heavily at every troubled mortgage and in many cases the customer cannot be helped. More often than not it is some fault of their (homeowner’s) own as to why they are in the predicament they are in. More often than not, these people failed to properly plan for the “rainy day”, which is not the banks’ problem. Again, for the most part the banks hands are tied, AND the government is still calling the shots!
People need to stop believing the excuses – even those of job loss and health crisis. More often than not the personal finances of those individuals and families was a tightrope BEFORE the job or health problem. Believe me when I tell you that banks are trying to help homeowners, but the homeowners have not done the right things at all. Big rainy days funds, huge savings accounts, no credit card debt, good health insurance (even high deductible for catastrophe) – none of that stuff is there to show banks you’ve done the right things.
NO the banks should not forgive the mortgage principal. NO!
YardDawg
March 25th, 2010
2:11 pm
Why not? The reality is that irresponsible behavior is not isolated to many of these people’s actions when it came to improper planning when originally purchasing the home. Irresponsible behavior generally transcends all of these individuals behavior.
Case in point is the failure to a large degree of the ‘Making Home Affordable’ program. The number of mortgages reworked has fallen far short of the government’s goal not because of the willingness of lenders, but because 80% of original applicants fail to get off their bum and turn in the necessary paperwork. And on top of that, 30% of the approved loan modifications fall right back into delinquency.
So let BoA throw this program out there; most will be too lazy to turn in the paperwork or so irresponsible that they will fall behind again within months.
So whats next
March 25th, 2010
2:12 pm
No. I bought a home and paid 135,000 for it. Thats what I could afford and I am paying the mortgage every month like clockwork. I could have bought a home for 450,000 with a buydown and stupid financing but I didnt.
They bought it, they knew what the payments were to be and they knew that they could not afford it. For those who claim that one of the persons in their home is out of work, my answer to that is tough. One knows they dont put all their money into one thing. You should have never bit off more then a single paycheck in your home. Then if one of you gets laid off the other can cover.
Im tired of giving giving and giving. I will pay the price in higher taxes again and quite frankly I am tired of supporting everyone else with the money I earn on a daily basis. We need the fair tax so everyone in the country pays and not just the dedicated that gets up every day and earns their way.
NO NO NO NO MORE!
MMoore
March 25th, 2010
2:13 pm
NO!!! Why should only those who are NOT paying their bills get to have part of their debt obligation written off?? And who will be funding all of this? That would be the TAXPAYERS of this nation, which includes my family. I don’t want to pay for anyone else’s stupid choices or unfortunate circumstances.
Intownwriter
March 25th, 2010
2:13 pm
Yes, all banks should. None of the Federal dollars are making it to John and Joan Q. Public, and we’re the ones who are hurting worst.
MH
March 25th, 2010
2:16 pm
LOL commoncents
AMEN disgruntled
This is the same principal that the healthcare fight is based on. There are no guarantees in life!!!
People who are responsible tend to have health insurance and make sure they keep it. Responsble homeowners put money down and read the docs they sign. Everyone should have enough money saved for a rainy day. Responsible individuals are tired of the excuses wheather it’s a home or healthcare! No more excuses – take control of your life NOW!
TR
March 25th, 2010
2:18 pm
What a joke. The government gets paid by our taxes, the bank makes money by investing our money. No matter what you give away your taking it from others. For each penny that goes out a service has to be rendered (job). If people want help let them earn it. If you pick up trash or mend potholes there are plenty of ways to earn “assistance”. If you don’t care to earn. then you don’t need help. The way Obama is going there won’t be any incentive for people to be productive. What kind of society are we trying to create???
shaniqua w.
March 25th, 2010
2:22 pm
why should i have to pay ? me and my peoples are victim. white folks…. u never walked a day in a sistas shoes.
Tellin it like it is
March 25th, 2010
2:24 pm
I agree Atlantan!
Mondays are never on time and always complain.
rtayl1
March 25th, 2010
2:25 pm
What has to realized is there was no reason for all banks to raise the rates at the same time on these types of loans knowing the danger they would be putting the market in. This was a setup by the banks from the beginning. They knew the financial state of the customers based on the type of loan they had to get. Why raise the rate to (in some cases) that would double the monthly payment. Was it wrong for the homeowner to accept a risky loan getting a house the only way they could or was it wrong for the banks to raise the rates (not because they had to) to put the mortgages out of reach.
Furious
March 25th, 2010
2:25 pm
@TR – “What kind of society are we trying to create???”
That’s an easy one.
The Dems are trying to create a society SO dependent on the government that the politicians will have almost unlimited power.
Bailout Money
March 25th, 2010
2:32 pm
Yeah!!!! I wish it could have been there for the people last year. Go
B of A. You are the first and now everyone will get on the ship.
scott wallace
March 25th, 2010
2:32 pm
if we don’t help out the blacks they will cry and complain. god forbid they work and pay bills like the rest of us. the world is going to hell.
Jeff in ATL
March 25th, 2010
2:35 pm
What’s cheaper and better for shareholders?
A 30% reduction in principal … or … for the homeowner to walk away, so the bank loses interest and has to try to sell the house in a depressed market?
Give the principal reductions. And no matter how much you don’t like it, if a lot of people don’t get a principal reduction, they’re going to mail the keys to the bank and walk away from the mortgage.
Chuck
March 25th, 2010
2:37 pm
NO! If that’s the case. I want to buy one at 30% off too!
bammer from chelsea, alabama
March 25th, 2010
2:37 pm
wellllllll i guess the people of color gonna get everything for free
Bailout Money
March 25th, 2010
2:38 pm
@Scott Wallace – I see your problem. Your just mad cause your not Black!!!! HATER!!!! Get mad at your ancestors not Black America!!!
Braves Gal
March 25th, 2010
2:39 pm
No one made these people sign the mortgage agreements that they signed. We have payed our bills through 12 plus months of unemployment. But, we have no cell phone contracts, no designer clothes, no Coach purses or manicures, paid for used cars with good gas mileage…All some of these people want is government help for everything. There is no personal responsibility. I am really tired of helping out greedy, people who think they are entitled to have everyting and not be responsible for anything. BOA< you may lose me as a customer.
bufordmom
March 25th, 2010
2:40 pm
So, let me get this straight…First of all, we bought a house we can afford. We’ve never been late for a payment. So, along with paying for our house in a responsible manner, the federal gov’t is going to seize our tax money to give to banks so that they can let the irresponsible people be forgiven 30% of their mortgages? How is that not socialism and redistributing the wealth? So much for me teaching my kids the responsibilty of the real world. There is no responsibility anymore. And, how many of these people have Escalades, Gucci purses, designer jeans, etc.? But yeah, they just couldn’t make that mortgage note.
scott wallace
March 25th, 2010
2:40 pm
hey bailout money – i saw you online the other day. on the fulton county mugshots webpage. still using “retarded” as your defense in court?
Jeff in ATL
March 25th, 2010
2:41 pm
“More often than not the personal finances of those individuals and families was a tightrope BEFORE the job or health problem.”
Then no bank should have given them a loan in the first place. Banks did an abjectly horrible job at calculating risk, to their near undoing.
Jeff
March 25th, 2010
2:41 pm
The question is ’should banks forgive mortgage principal?’ The answer is ABSOLUTELY NOT!!!!! It is NOT a lender’s or seller’s responsibility to ensure that you can pay your bills — it is YOUR RESPONSIBILITY AMERICA!!! I know under this current administration and culture of entitled Americans, the word “responsibility” is never heard, but we HAVE TO LEARN IT!!! It is not a bank’s job to “help” us out if we can’t pay a bill… we signed the note, we took on the debt, so it’s our RESPONSIBILITY to pay it. The same thing with a car, a toaster, a pair of shoes, a stereo, a washing machine, a weed trimmer, porch swing, a DVD set, a table, WHATEVER WE BUY… it is OUR job to manage our finances well enough that we can afford it and not leverage ourselves into overwhelming debt. It’s OUR job… yours and mine… NOT the bank, NOT the lender, NOT the company selling something, and certainly NOT OUR GOVERNMENT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Wake up, America… a revolution is coming. The majority of us who are semi-intelligent, responsible, hard workers and have common sense are SICK and TIRED of the lazy, entitled, whining “government save us” people running the show. It’s going to stop and it’s going to stop soon. You’re going to see more and more quiet, everyday, hard-working, blue collar people start to stand up and say THIS ISN’T RIGHT. We will start holding our government responsible for doing its job and ONLY its job, and we’re going to start kicking out of office, one by one, these idiots who decide to take OUR tax money and bail out the big banks, then bail out the investment brokers, then bail out the auto makers, then bail out the health care industry… it’s going to stop and it’s GOT to stop, or in 50 years, we will be a shell of the country we once were (if we have not been taken over by a foreign power).
Wake up, America… we have to PRACTICE responsibility, TEACH responsibility, EXPECT responsibility and DEMAND responsibility!!!!!
Mafe PId
March 25th, 2010
2:42 pm
I think this is an outrage!!!! I am a BofA Home Loan customer and I pay my mortgage to them in full an don time every month….why aren’t they rewarding people like me instead of those who bit off more than they could chew? Perhaps all of us BofA customers who honor our agreement with them should take our mortgage business elsewhere – if they love the deadbeats so much then try to survive with just deadbeat business.
Bailout Money
March 25th, 2010
2:43 pm
Hey Scott Wallace…still paying for that student loan for something your not using Your BRAIN!!! Ignorant!!!! Again get mad at your ancestors not Black America….HATER!!!
rtayl1
March 25th, 2010
2:43 pm
Come on people this is not a race issue; this is a banking greed issue with no morality taking advantage of people. They had no cause to raise the rates on the high risk loans knowing the financial state of borrower. This was a market wide plan ( all banks raising the rates on their high risk loans). These people (banks) live eat breathe money; they knew the outcome and what the government would have to do.
scott wallace
March 25th, 2010
2:46 pm
the only time I care about black america is when football is on TV.
how all your childrenz doing………..
boy
Rod
March 25th, 2010
2:46 pm
No I do not think the banks should forgive the principal. I worked hard to get my modest house paid off. People should not live beyond their means. I would like to have a bigger finer home but I don’t bite off more than I can chew. Maybe lower the interest rates. What happened to hard work and paying your way in this country?
JCV
March 25th, 2010
2:49 pm
Where’s the bailout for all the people who paid there bills on time and didn’t buy a house they knew they couldn’t afford?! I’m sick and tired of having to pay for everyone else’s stupidity! How about waving some of my mortgage principal, credit card balance or my student loan balance. No, I get to have “here’s your penalty for being such a great customer!”
Bailout Money
March 25th, 2010
2:49 pm
Touched a nerve didn’t I Scott Wallace. I am a White American just like you, but I don’t see your point of view. You can’t see that the outcome is going to be better for all – not just a race. I only wish you peace and love. You’ll see.
T.A.
March 25th, 2010
2:50 pm
I am a bit torn about this proposal. In these rough times, this proposal immediately sounds good to anyone who has a mortgage and is under water. The comments so far that have been typed are a bit insensitive. Not everyone who is going into foreclosure brought a home that they could not afford. There are people who calculated the home they could afford with their jobs. Have anyone thought of these people losing their jobs, draining their savings to keep afloat but could not maintain their home or any of their possessions?
I can agree with some of the comments here about people who ran out and brought huge McMansions and a Lexus while only making $60K a year, since technically speaking they could not afford such a lifestyle. However, for those who actually did buy what they could afford (the rule is not buying a home more than 1.5 times your income), had at least 6 months of savings in mortgage payments and bills and still ended up losing it all, those are people who I most certainly have some compassion for.
Now, as far as this proposal, it could reward irresponsibility, especially for those who didn’t plan and who lived beyond their means. However, it could really help those who didn’t and unfortunately got caught in the high tide. The language is interesting in this post- “some customers” is really important. Not everyone who is under water will get this opportunity. I’m sure if Bank of America is going to do this, they’ll be prudent on who they’ll allow to go through it. Some people will need to lose their homes and learn their lesson; others who knew what they were doing and planned properly but ended up in an unfortunate situation can get some help.
scott wallace
March 25th, 2010
2:50 pm
call me sir sissy pants
T.A.
March 25th, 2010
2:55 pm
As I said in my previous post, Bank of America really needs to be prudent if they pursue this policy. If possible, the company should get some insight into the person’s income when they initially bought the home, what other bills they had at the time (such as other loans, car payments, etc) and attempt to determine whether or not the person in question made an appropriate decision to get a mortgage in the first place. Those who did not over extended themselves can get a helping hand by reduced interest payments or some other type of plan to allow them to keep their home. Those who were reckless in their buying will have to learn.
JCV
March 25th, 2010
2:59 pm
I’m not saying everyone has made stupid choices…but because of the ones that did (knowing from the beginning that they couldn’t afford it), I should not have to pay. Why should they get to stay in their house, kept their car, and get their credit card balanced waved, because they made wrong choices. Please, since when do we not have to pay the consequences for our actions! Noone is knocking on my door and saying “because you have been such a loyal customer and paid on time and never had any issues, we are going to cut your bills in half”, why should the ones that screwed up get this benefit.
Bailout Money
March 25th, 2010
3:02 pm
Why are you all still talking about who can and who cannot afford a mortgage, this is the American Dream. We all grow up with this dream. We can’t help if the s@!t hit the fan, people lost jobs, companies folded, balloon payments are due. What do you do. If we did not get the help where would we be. We need to start thinking morally, not monetary. Broke people always think about money and rich people do not.
MH
March 25th, 2010
3:13 pm
“Then no bank should have given them a loan in the first place. Banks did an abjectly horrible job at calculating risk, to their near undoing.”
There is lots of blame to go around – but the biggest offender in all of this mess was the government forcing the banks to lend money. Now the government is wanting to control our healthcare – more disaster on the horizon. Come on people WAKE UP!
MH
March 25th, 2010
3:20 pm
“We need to start thinking morally, not monetary. Broke people always think about money and rich people do not.”
Rich people have bigger money problems than “broke” people do !!! So are you trying to imply that it’s morally right to take money from the rich to hand over to the “broke”? Socialism leads to failure and bigger problems, do your homework and learn about the downfalls of that way of thinking!!!
Brian
March 25th, 2010
3:25 pm
If someone can prove that they were buying a home within their financial means (not on an ARM and with 90% of their income) then let the bank forgive the portion of the principle that they cannot recoup after foreclosure so that they may one day buy a home again and not pay for a mistake forever. However, they cannot stay in the house. As many have mentioned, why should I buy a house at $175,000 and see the same decline in value as everybody else but continue to pay my mortgage when the guy up the road gets a rework in the interest and principle and now has a lower mortgage payment and lower debt obligation to the bank. I should just quit paying my mortgage.
ugaaccountant
March 25th, 2010
3:28 pm
“T.A.
March 25th, 2010
2:55 pm
As I said in my previous post, Bank of America really needs to be prudent if they pursue this policy. If possible, the company should get some insight into the person’s income when they initially bought the home, what other bills they had at the time (such as other loans, car payments, etc) and attempt to determine whether or not the person in question made an appropriate decision to get a mortgage in the first place. Those who did not over extended themselves can get a helping hand by reduced interest payments or some other type of plan to allow them to keep their home. Those who were reckless in their buying will have to learn.”
This exact analysis was the law until Bill Clinton decided everyone was “entitled” to a home. When banks stopped doing this homework, it was an irreversible step towards today’s problems.
JCV
March 25th, 2010
3:29 pm
I’m not talking about unforseen circumstances… I had a ARM loan, and was aware of what I got when I got it and I knew I had 5 years before it changed, so my options were to sell my house or refinance. When the 5 years were approaching I couldn’t sell it, so I refinaced before my payment doubled. It was pretty painless. All I’m saying is for people to take some responsibilty (like I said earlier this does not apply to all) instead of just putting you hand in my pocket and taking my money…that I need to keep the roof over my family! Because we all know that the “money” to write-off all these loans is going to come from somewhere and it isn’t BOAs pockets!
MH
March 25th, 2010
3:29 pm
Bravo Jeff, excellent post! The foreign powers that be are on the edge of their seats right now just waiting for us to tailspin into socialism. Why do you think they are so pro-Obama and were so anti-Bush? It is because foreign entities are waiting ever so patiently for us to fail so they can take over our country. The US fought so hard to become a free nation and in the blink of an eye it can all dissappear. America will go down in the history books as the biggest success and the most horrendous failure.
Rufio
March 25th, 2010
4:05 pm
The big problem is that the federal government started this ball rolling by bailing out AIG, Goldman Sachs and all these Banks. In essence the people of the United States did this through their leaders. Now, the US Government is going to allow the banks to turn on the very people that bailed their backsides out of the fire.
I have worked for 30 years and I was injured. I worked during the injury. I have had 4 surgeries and am disabled. The WC company was AIG and they stopped paying claims and disputed everything so they did not have a monthly expense. I am now suing in our Work Comp system. It has been 2 years and we are no where near a resolution. I have applied for SSDI and I was turned down mainly because of my age. The general opinion about SSDI is you get turned down twice and then you get it right before court. That seems to be happening in my case.
Every loan modification was made on time. I have applied twice for the Tarp/Obama refinance and we have not heard back from the lender. They have used 2 different types of loan documents that were completely opposite from each other. I have left numerous messages for the executive resolution officer and their manager and they won’t return a call. We will end up in bankruptcy and probably lose the house because my government bailed out the bank and AIG and re-armed them to take me out. Because of the bureaucracy of SSDI and the GA Work Comp System I will lose out. Why ? Because I worked hard and got hurt. Shame on our Leaders………….
BUCKMASTER
March 25th, 2010
7:16 pm
SURE as long as they are required by Federal Mandate…(SOCIALISIM) To Forgive all credit card debt as well….. Why not i mean if Obama can convince the World Bank to forgive All of Hati Debt, Then why can we not help ourselves…. Gee Yogi i wonder….PEACE
RUSERIOUS
March 25th, 2010
10:56 pm
R u serious? To Shaniqua W. and Joquita, get your heads out of the racist dirt. You are trying to perpetrate a false identity and we see right through you. Your intent was to incite others to follow your “blind” lead. Your attempt at making others think that a “particular” group of people would take the time to leave comments in such vernacular is ludicrous. Give it a rest.
Jon
March 26th, 2010
12:07 am
I think this is crazy! Let them fail! I think this is the first time I would want to sue for equal rights. I feel like we should get a large class action lawsuit to go after the big banks. If all the Obama people want everyone to share paying for health care and everything else in this great country. Then continue that by making all banks to forgive 30% of our mortgages and with a lower interest rate.
MTA56
March 26th, 2010
7:37 am
I believe boa is trying to trip up good customers who are current & owe little on their loans. I was with Country Wide & never had any problems. Now with boa I have problems paying my mortgage online every month. Now they are telling me if I got a checking account with them all the problems would disappear! Seems as though they are FORCING the checking account with them issue. I wish they would fail!
Scott
March 26th, 2010
7:41 am
I risk sounding trite…but! My business places me literally into the homes of the people this program is designed to help.
With almost no exception…these people find the money to buy so many items they do not need; TV’s, stereos, mobile phones, jewelry, cars…and on and on. Americans have no problem helping the needy but are becoming increasingly disgusted by a government that takes money from those making good financial decisions and gives it to those making bad financial decisions.
And as for the narrative “these poor people were tricked into a mortgage table”…..Please! I sit at more closings than most and basically the choice was…”you want to pay $1000 a month or pay $700 a month with the risk of it going up in x years?”. You haven’t got to be a Fed Governor to figure out the choice. For the most part…they bet and lost.
GaryAMG
March 26th, 2010
9:10 am
If this is what they’re giving the deadbeats,what do I get for 27years of never missing a payment living in multiple residences?
Henry
March 30th, 2010
1:28 am
A lot of you people are Obama haters and Democrat A**hole wipers. Pres Obama is the only President with the Guts to tell the Repulicans where they can put their fingers! I used to be a Republican! But I am ashamed of their gutless b*****it, wishing only for the failure of a President who has done stuff that no other had the Guts to do so. We needed Health Care,(Now 30 mil or so of us have a chance) I am willing to Pay.) He is trying to keep people in their homes! (Yes the banks are a complete F***Up. So is Wall Street and all those Fa*g*t stock Brokers.
Didnt you realize you dumb f**ks when you were making your payments on time that you were lining the pockets of the Republican Treasurers and their Cronies. So dont tell me how morally wrong it is for Banks to cut the Principle on these toxic Mortgages and underwater loans. Have you stupid sh*ts seen the neighborhoods where greedy builders built thousands of beautiful homes, but are now Ghost town neighborhoods. These greedy builders and developers built these places for profit, and then went out and hired pizza delivery kids to call sumb f**ks like you pay all your bill types to buy. THE SMART ONES YOU WILL SOON SEE ARE THE ONES WHO GOT IN OVER THEIR HEADS AND RAPED THE SYSTEM JUST AS THE BANKS AND GREEDY DEVELOPERS DID… YOU BAST**DS WHO ARE CRYING ABOUT PEOPLE WHO GOT IN OVERTHEIR HEADS OR LOST THEIR JOBS, FORGET THAT THESE PEOPLE ALSO PAID THEIR TAXES, JUST LIKE YOU D***HEADS. IF THESE HOME OWNERS GET THE STUPID BANKS TO LOWER THEIR PRINCIPLE TO THE CURRENT APPRAISED VALUE OF THIER HOMES, WOULD BE FANTASTIC. BUT REALIZE THIS: IT IS NOT AN EASY PROCESS TO GO THROUGH. FINALY. I PAY ALL MY BILLS, I USE THE SYSTEM WHERE I CAN(WHY THE HELL NOT) BUT YOU WILL NEVER FIND ME KICKING THOSE WHO ARE DOWN AT THIS TIME DUE TO JOB LOSS OR OTHER FINANCIAL DISTRESS. THOSE OF YOU S**T hEADS WHO ARE CRYING ABOUT THE HELP THEY MIGHT GET, “GO TO HELL”
Doran Peck
June 11th, 2010
8:04 pm
The banks could, right now today, forgive all loans and not lose a penny. The banks never loaned you their money in the first place. (Law: Banks cannot loan their own money) Your original signature allowed the bank to get that money plus an added 9X that amount (Law: banks can only lend 10% of their assets).
The bank loaned you your own money….and they kept the rest without your knowledge or consent (Law: a contract is null and void without fuill disclosure)
So the bank, while informing you that they had “risk” in lending you money and applied an interest payment to cover their risk….they in fact did not have any risk. They were payed in full already