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Everyone To Bank of America: "We Don't Want You Steenkin' Free Cash"

Tyler Durden's picture




 

The venerable Bank of America recently sent letters to 60,000 struggling homeowners with the caveat-ridden generous offer of slicing an average $150,000 off their loans; the response was - silence. It seems the total and utter 'borrower fatigue', as Bloomberg puts it, that leaves homeowners relying on the very same banks that committed loan servicing abuses to avert foreclosures. Yet another program, that BofA specifically accounts for almost half of the fines of, ends up helping far fewer people than intended. Simply put, borrowers have lost faith in the process and in response to BofA's question, "we are working very hard to determine why response rates are lower than expectations", the incredulous response is "there’s incredible dysfunction in the way they set up their systems to handle this, and when mistakes happen, which is constant, they have very little ability to correct them. If Bank of America is complaining about borrower fatigue, they can look to themselves for the reason."

From BBG:

“The number of customers responding is lower than we expected, given the significant assistance available,” Frahm said in an interview. “We are working very hard to determine why response rates are lower than expectations.”

 

Bank of America, the second-biggest U.S. lender by assets, will offer principal reductions to more than 200,000 clients by August, Frahm said. Other steps include cash incentives to sell a delinquent borrower’s home for less than the amount owed and a pilot program to turn owners into renters, he said.

 

Homeowners are exhausted from fighting foreclosure and may think offers to cut loans by one-third aren’t legitimate, Ron Sturzenegger, head of the lender’s Legacy Assets Servicing unit, said last month at a conference in Denver.

'Modifier' complaint forums are replete with examples of rejection due to 'bank mistakes' and 'botched customer interactions' and "it’s been nothing but a horrible experience with Bank of America." leaving poor old "confident of meeting their obligations" BofA with all this money (due to come off its balance sheet) but as the Center for Responsible Lending noted "The whole nature of the settlement was ‘We had a broken system,’ and now you’re asking people to trust this system, a lot of people are reluctant to believe the banks", and while we are certainly not on the side of a wealth transfer for non-performing mortgage holders leaving the diligent mortgage payers at an implicit loss; as Bloomberg notes "If the attorneys general and the monitor are willing and able to crack down on Bank of America and the other servicers, the settlement may help a lot of people, if they don’t, it will be yet another disappointment", leaving people so mistrusting that they won't even take 'free money' because what 'strings are attached' this time?

 

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Thu, 07/12/2012 - 14:58 | 2610683 veyron
veyron's picture

why is this a surprise to anyone?

Thu, 07/12/2012 - 15:03 | 2610693 Praetorian Guard
Praetorian Guard's picture

Hello, McFly? Anyone home? This is NOT free money!!!! Buddy of mine on a 800K jumbo received one. The caveat is that they will wipe the principle off of the loan to the tune of 150K but you have to pay TAXES to Uncle Sam on it, AND it NEGATIVELY impacts your credit score. Buddy's accountant said don't do it!!

Thu, 07/12/2012 - 15:07 | 2610705 JLee2027
JLee2027's picture

It's a trap than. bocksucking casterds.

Thu, 07/12/2012 - 15:23 | 2610774 hooligan2009
hooligan2009's picture

that would be castards :)

Thu, 07/12/2012 - 15:31 | 2610785 Ahmeexnal
Ahmeexnal's picture

Financial terrorism in Deutschneyland:

http://www.thelocal.de/money/20120711-43689.html

The German Institute for Economic Research (DIW) suggested that those with a substantial private fortune be forced to hand over 10 percent of what they have over €250,000.

Vierte Reich rising?

 

Meanwhile across the border in Switzerland, forest bushes give gold ingots as fruit:

http://www.thelocal.ch/3748/20120712/

Two council workers in Switzerland could be in for an unexpected windfall after finding gold ingots worth 124,000 francs ($126,000) behind a bush, it was reported on Thursday.

"I saw a package wrapped in white tissue paper, with lots of adhesive tape around it. It looked like a packet of drugs," said Jean-Marc Wenger, from the Swiss town of Klingnau in the north of the country, near the German border.

It was only when the men -- who were out grass cutting -- opened the mysterious package on June 28 that they discovered an undisclosed number of gold bars weighing 50-100 grams each, some 2.5 kilograms in total, ATS said.

Time to go forest fruit picking in CH?

Thu, 07/12/2012 - 15:32 | 2610800 Herd Redirectio...
Herd Redirection Committee's picture

How about those with more than 2m are forced to give 10%?  And holding co.s and shell co.s and offshore accounts get raided as well?  We need to go after the real rich people, the billionaires.  The ones not even listed in the Fortune 500 (*cough the Crown, and the Rothschilds cough*)

Thu, 07/12/2012 - 17:22 | 2611158 twotraps
twotraps's picture

Actually having them charge people with assets some lump sum might then cause the rioting we've been looking for!  where is the money going to go?  Greece?  Until now, many have been touched by it but take real cashh out of someones account to cover some pretend account somewhere with Jillions in losses....so a bank does not have to take the fucking loss.....now you've gone too fucking far.

Thu, 07/12/2012 - 17:41 | 2611201 NidStyles
NidStyles's picture

So you admit to being a theif. 

Fri, 07/13/2012 - 02:08 | 2612030 cbxer55
cbxer55's picture

i before the e, except after c. Thief. ;-)

Fri, 07/13/2012 - 04:19 | 2612076 NidStyles
NidStyles's picture

YAYA!! Grammar correction on the Internet. Do you get paid for your services?

Thu, 07/12/2012 - 21:27 | 2611682 Andre
Andre's picture

Don't forget, corporations are people too! The Supremes said so.

Thu, 07/12/2012 - 22:00 | 2611739 robertocarlos
robertocarlos's picture

I love it when people bite themselves in the ass.

Thu, 07/12/2012 - 15:40 | 2610835 flacon
flacon's picture

Here's a better idea for the German Institute of Economic Fallacies: FORCE the bankers who loaned money they didn't have, to people who couldn't afford to repay because there isn't enough money in the system to repay it... and have them all hanged.

Thu, 07/12/2012 - 17:24 | 2611164 twotraps
twotraps's picture

Exactly, people have real accounts, all the rest is pretend bullshit until the bill is due.  Honestly, Illinois is $8 Billion in the hole, should we give them money to pour down the same fucking hole that got them in trouble??????  WTF

Thu, 07/12/2012 - 18:46 | 2611313 imamonkey
imamonkey's picture

Fuckin' A right - Funny BOA doesn't want to help me except they send me the intent to FORECLOSE letter every 2-3 weeks. All I want is my modification & start making payments again & maybe a little sleep at night.

Fannie says they own my loan but has the shitiest bank in the world deciding if I'm worthy to keep my fucking house - LOL they don't understand why I suffered a hardship... cocksuckers all of them.

My small business was crushed for the last 3 years because of their shitty bets ... funny how I'm getting forced out of my home but no one is FORCING BOA to help un-FUCK the people they FUCKED ... somehow I don't think I said FUCK enough ...

Thu, 07/12/2012 - 19:58 | 2611485 Praetorian Guard
Praetorian Guard's picture

Fucking A...

Thu, 07/12/2012 - 19:59 | 2611490 Praetorian Guard
Praetorian Guard's picture

Fucking A...

Thu, 07/12/2012 - 23:03 | 2611796 zhandax
zhandax's picture

Youse stuck at the beginning of the Italian alphabet?  Fuckin A, Fuckin B, Fuckin C, Fuckin D......

Thu, 07/12/2012 - 21:29 | 2611585 FEDbuster
FEDbuster's picture

If Fannie owns your loan then BofA doesn't give a shit about you or your mortgage.  They just do the foreclosure to earn some fees from Fannie.  Fannie doesn't care, because they were bailed out and back stoped by the Treasury.  The Treasury doesn't care, because they are getting free money from the FED.  The FED really doesn't care, because they can print as much money as they want.  So someone will dump your shitty mortgage into the shit abyss with all the other shitty loans they are stuck with.  Then they will take your house and sell it to some Wall St. REIT for pennies on the dollar of what you owed them (most likely half of your mortgage balance).   The rest of the "loss" will be tacked on to the National Debt.  If you live in a recourse state, they will come after you for the deficiency just to make your life a living hell till you finally go BK, and tell them to get fucked.

Maybe the economic collapse will come, before they foreclose?  Then no one will be paying, and no banksters will try to foreclose.   There will be much bigger problems to deal with.

Obamney 2012, Hasten the Collapse

Fri, 07/13/2012 - 10:03 | 2612677 boiltherich
boiltherich's picture

Or if you live in a NON recourse state they will simply change the locks and sit on the house for year after year till you file bankruptcy because your credit score with 30 or 40 or 80 late payments will be lower than if you file chapter 7.  I am 55 and do not plan to live long enough to see residential real estate return to a rational fair market given it is going to be at least 20 years for that, so I care not what the bank does with the house.  If Chase wants to play a game of chicken thinking they can sit on the place for the rest of time then so be it, I can too.  I don't really need credit, I am at a point where most of what I need I have and what I lack I will save and pay cash for.  I plan to drive my BMW for the rest of my life. 

Fri, 07/13/2012 - 22:34 | 2615089 FEDbuster
FEDbuster's picture

In order for Chase to change the locks, they had to have foreclosed on your home.  If they foreclose, you no longer owe them anything in a non-recourse state.   I am in AZ (a non-recourse state) and there are plenty of empty, foreclosed homes around me.  The banks are sitting on the shadow inventory hoping that by constricting the supply prices will rise.   It  might help prices a little, but vacant homes don't age well.  There will be many more foreclosures before this collapse runs it's course, and it may take twenty years to rebound without a hyper inflation.

Thu, 07/12/2012 - 21:12 | 2611649 Cynthia11640
Cynthia11640's picture

Relax, You'll be okay.  I'm a lawyer in AZ.  You just need to escalate your file. If Fannie Mae owns your loan, they have to put you through the Hamp windfall process first (Gross Income is used). If you get denied, ask for a traditional or in-house modification (Net income is used).  Remember, if you are self employed, it is better to to a P & L statement every month, rather than quarterly.

Take a breath, make sure all your docs have been submitted that they requested and then call the solution center. They are very nice and will take care of you

I suggest you call rather than email

 

support@hmpadmin.com

Phone
(866) 939 - 4469

 

Fri, 07/13/2012 - 01:09 | 2611968 Freddie
Freddie's picture

"No - you did not say F enough."

Tony Montana

You think that is bad - how about a bank trying to throw a loan into default after 9 years of never a missed payment.  They wanted the equity.  Banks are CS'ers.  I used to think the small ones were okay but the O-Islamic is squeezing them to get money out of them that all banks are slimeballs now.   F banks!

Thu, 07/12/2012 - 15:41 | 2610839 ZeroAvatar
ZeroAvatar's picture

Sock Cuckers!

Thu, 07/12/2012 - 15:30 | 2610793 OutLookingIn
OutLookingIn's picture

If it looks too good to be true?

It usual is!  

Rule #1 ~ The banks DO NOT give away "free" money. Period.

Rest assured there will be strings attached to any such offer.

The TBTF's are NOT in business to give away "free" money. Good luck with accepting the poison.

Thu, 07/12/2012 - 15:48 | 2610858 flacon
flacon's picture

Banks need that signature in order to legally conjure into existance United States Corporation Dollars through the use of Fractional Reserve Banking, of which I know here in Canada is ZERO RESERVE. 

Thu, 07/12/2012 - 16:35 | 2611034 Janice
Janice's picture

Bank need that signature so that they can have original mortgage notes to foreclose with at a later date. As it stands right now, the banks can't provide an original mortgage document for the time period of about 2005 - 2010.

Thu, 07/12/2012 - 17:09 | 2611126 NotApplicable
NotApplicable's picture

Ding! Ding! Ding! Winnah!

Thu, 07/12/2012 - 17:26 | 2611167 Rainman
Rainman's picture

clever and probably correct theory

Thu, 07/12/2012 - 18:17 | 2611268 neidermeyer
neidermeyer's picture

CORRECTAMUNDO ,, and it will keep the money coming in if the homeowners aren't upside down ,,, something like 9MM mortgagees not paying 90days+ right now ,,, if they thought they had something worth keeping they will keep paying..

 

right now the banks are holding no cards ... the mortgage notes were converted to share certificates and are no longer secured.

Fri, 07/13/2012 - 00:51 | 2611952 maxblockm
maxblockm's picture

Janice has the answer.  

Property with original loan for 500k, balance left 450k, property now underwater valued at 400k, home'owner' stops paying, banks can't forclose because they don't have original note, bank write-down to 250k, property values continue down to 50k, home'owner' stops paying, but this time the banks have the original promissary note from time of writedown...

Thu, 07/12/2012 - 15:42 | 2610841 azzhatter
azzhatter's picture

Venerable???? How about pus filled cancerous sore on the face of America?

Thu, 07/12/2012 - 16:37 | 2611043 waterhorse
waterhorse's picture

a honey-comb fistula oozing purulent fecal material down the cleft of the buttocks of society.

Fri, 07/13/2012 - 00:20 | 2611920 I Am The Unknow...
I Am The Unknown Comic's picture

The VENEREAL Bank of America

There, fixed it for ya! 

Thu, 07/12/2012 - 15:44 | 2610849 azzhatter
azzhatter's picture

and a $150,000 1099

Thu, 07/12/2012 - 15:12 | 2610718 distopiandreamboy
distopiandreamboy's picture

Anytime you borrow large sums of money it negatively impacts your credit score. The amount of outstanding debt is part of your credit score calculation. So everyone with private student loans is screwed, royally, so to speak.

Thu, 07/12/2012 - 15:50 | 2610871 adr
adr's picture

Not really, It has more to do with debt vs available credit. Bank of America cutting your credit in half will cause your credit score to drop more than taking out a loan for $50k.

When I bought my house in 2009 BAC cut my open credit line from $42k to $5k for no reason other than I wasn't using it. My credit score dropped from 789 to 735 in the week between my credit check and my closing date. When I went to close I found out about the nasty surprise. If I dropped below 730 I would have lost the loan.

Six months later BAC increased my credit line to $55k, because I had a house. Wow, brilliant logic there Bank of America.

Thu, 07/12/2012 - 16:11 | 2610943 ParkAveFlasher
ParkAveFlasher's picture

You say "brilliant logic" ironically, but I say "brilliant design" and I mean it.  I experienced a similar synchronicity while refinancing, my CC maxes were all cut to a third and the companies called in the over.  Smacks of design, not conincidence.

Thu, 07/12/2012 - 15:10 | 2610721 chunga
chunga's picture

Yes.

Also waive any and all chain of title claims in a 5,000 page release form.

Along with a 1099 you get a "Special Warranty Deed" that isn't worth a shit.

Thu, 07/12/2012 - 15:14 | 2610736 Praetorian Guard
Praetorian Guard's picture

Very true! Most do not realize that a refi shifts your loan to a recourse loan, where you could potentially (depending on State) be subject to a deficency judgement.

Thu, 07/12/2012 - 15:15 | 2610741 ZeroPower
ZeroPower's picture

Bullshit. What about all the frugal homeowners who have either refinanced and are paying ridiculously low rates now (fixed, of course) or, even better, were smart enough to NOT need that extra LCD in the bathroom and put money away each month to completely pay off their mortgage. Where is their settlement?

Oh wait, the system rewards greed and gives a bailout to those who really are probably NOT the most in need.

Thu, 07/12/2012 - 15:21 | 2610757 chunga
chunga's picture

Those people get the worst kick in the balls of all and should sue them too.

Thu, 07/12/2012 - 15:26 | 2610786 Joe Davola
Joe Davola's picture

Shoulda worn my cup today.

Thu, 07/12/2012 - 15:37 | 2610822 francis_the_won...
francis_the_wonder_hamster's picture

"Those people get the worst kick in the balls of all "

Nope.  The worst ball-kicking goes to those who stayed out of the market, paying taxes and rent, waiting for the inevitable housing crash so we could pick up great properties on the cheap.  Not only do we not get mortgage tax deductions, but Bernanke has been pretty successful in keeping housing from collapsing to its proper level, while rents have risen.

Thu, 07/12/2012 - 15:57 | 2610892 Freewheelin Franklin
Freewheelin Franklin's picture

Rents have risen because there is a real shortage of single family home rentals. As long as propert values are artifiially inflatex, and everyone and the horse they rode in on knows it, rents will continue to rise. 

 

I am patientlr waiting. I have a plan.

Thu, 07/12/2012 - 15:21 | 2610768 Michael
Michael's picture

This video should be renamed to something like, Lie-Boring for dummies;

It's over for the banking cabal. 4.jul.2012

http://www.youtube.com/watch?feature=player_embedded&v=0oV2mI0IYp8#!

 

Thu, 07/12/2012 - 16:11 | 2610949 waterhorse
waterhorse's picture

I wish I could believe it IS over for the bankster cabal - but with the kleptocrats still at the till, I don't believe it.

Thu, 07/12/2012 - 22:07 | 2611747 goldfish1
goldfish1's picture

 over is when?

 

they've been on life support for a decade at least.

Thu, 07/12/2012 - 15:25 | 2610780 Id fight Gandhi
Id fight Gandhi's picture

Yeah those are called suckers. It's been a money orgy fest for years where you borrow all you can.

Thu, 07/12/2012 - 15:25 | 2610782 Praetorian Guard
Praetorian Guard's picture

Well this is exactly what happened to a family member with a BofA loan. They walked in with a substantial amount of cash and asked the bank if they would give them a discount for being a good customer and paying it off in cash. The bank laughed and said no. They told them the same thing about all the broke dicks getting free rightdowns and the bank came back and said that they were under contract and that since they have been making their payments on time they did not qualify... fucked up system. Reward the limp dicks, and hurt those with the means... oh, and the funny part? They were going to charge them about $1000 to close out the mortgage, file the paperwork with the county recorder, and etc services. Needless to say they had a meltdown, and demanded their entire account liquified right there and then. Paid off the mortgage and took the money to a CU...

Thu, 07/12/2012 - 16:29 | 2611010 MrBoompi
MrBoompi's picture

They need to give $20,000 to everbody.  First, the money goes for any debt people might have and whatever's left, you keep the cash.  It's QE for everyone but the bankers, with lots of debt WRITTEN OFF, YOU MOTHERFUCKERS.

Thu, 07/12/2012 - 15:14 | 2610732 pods
pods's picture

I read before that one of these programs (HAMP maybe?) that the writedowns were going to come out of the fines imposed by the cushy AGs settlements.

So you are going to get fucked either way.  And to boot it will give the bank a mulligan on an impaired note while they send you a 1099.

Help you?

That is not in their lexicon!

If something they do actually DOES help you, you can bet that someone else is going to get screwed even worse to make up for it.

pods

Thu, 07/12/2012 - 15:17 | 2610751 Praetorian Guard
Praetorian Guard's picture

Exactly!!!! So now, if you don't pay the IRS tax, the IRS comes after your assets or levies judgements against you. How is that a "good" thing? It would be interesting to see how many properties were seized this way, and the banks turned around and bought the property free and clear via the US govt, thus making the bank a "win-win"...

Thu, 07/12/2012 - 15:30 | 2610794 Muppet Pimp
Muppet Pimp's picture

Your buddy needs a new accountant, no taxes on that type of capital gain until 2013.  If your buddies accountant really said that he needs his license pulled for incompetence.  That is normally correct but in '07 I believe it was suspended for 5 years.  It will more than likely be renewed before the year is up also.  Forgot the name of the bill but it is common knowledge.

Thu, 07/12/2012 - 15:38 | 2610829 Praetorian Guard
Praetorian Guard's picture

I believe it may have been due to him having a recourse loan (he previously took out a second). The law only applies to non recourse or original notes. I think they have made so much of this convoluted that the vast majority of service professionals (ie accoutants) are erring on the side of caution... PLUS, he would have had to have come up with about 100K since the appraisal crapped out...

Thu, 07/12/2012 - 18:55 | 2611324 Muppet Pimp
Muppet Pimp's picture

Perhaps it does not apply in this case, but the following is some info regarding the act.

http://georgewbush-whitehouse.archives.gov/news/releases/2007/12/2007122...

http://www.irs.gov/individuals/article/0,,id=179414,00.html

In all likelihood it will be extended, but keeping in mind how disfunctional our federal government has become though, you never know.  There are conditions, see the IRS link.

Thu, 07/12/2012 - 15:43 | 2610843 Sean7k
Sean7k's picture

I think that is only if you sell the house outright. These are the same 1099's they give people that negotiate their credit card debts. The turn it over to a collector that can seize anything- the IRS (which they own anyway). 

 

Thu, 07/12/2012 - 16:11 | 2610944 goodrich4bk
goodrich4bk's picture

You are confusing a couple of things.

First, there is never any capital gain issue on these deals because there is never any gain.  Every targeted homeowner borrowed more than the house is worth --- hence the forgiveness of principal offer ---which means that the homeowner's purchase price (his tax basis) is higher than its current value. Rather, the issue is forgiveness of indebtedness income.  If I lend you money and you default and don't pay any of it back, the IRS treats the forgiveness of that debt like you just received income in the principal amount of the loan.

Second, the IRS rules changed for tax years 2007-2012 for the forgiveness of debt on a principle residence when it arises from foreclosure.  In that limited case, no tax is owed.  Here, BofA is offering to forgive debt not via foreclosure, but through a loan workout settlement.  I am not an accountant, but this guy's accountant may believe that the IRS rule only applies to foreclosure forgiveness, not settlement forgiveness.

Thu, 07/12/2012 - 19:18 | 2611390 Hohum
Hohum's picture

Mortgage Forgiveness Debt Relief Act.  See your tax advisor.

Thu, 07/12/2012 - 15:34 | 2610807 Northeaster
Northeaster's picture

The write-down is considered income which is taxable by the IRS. Who the fuck that's already in trouble going to be able to pay the IRS on a $150 grand write-down? It's just like the morons that go for those "debt consolidation" scams, pretty certain they don't like the bill they get from the IRS after that move. This is the bullshit though, it's caveat emptor, most Americans don't have the expertise or knowledge, or can afford the advice to make prudent financial decisions. The banks sure as hell don't give a fuck, and neither do the politicians that allow this bullshit to continue.

Thu, 07/12/2012 - 15:45 | 2610852 Agent P
Agent P's picture

Debt forgiveness being taxable income is an IRS rule and is not specific to this program.  As for negatively impacting your credit rating, well, I would think being many months/years behind on your mortgage would lead to that anyway. 

Just out of curiosity, how much does your buddy with the $800k jumbo make?  If it's enough to afford the loan, the he should be paying it, in which case he wouldn't be receiving the letter.  If not, then he shouldn't have taken the loan in the first place.

Don't get me wrong, I'm not trying to stand up for the banks...fuck them for making bad loans in the first place.  I'm just sick of hearing about all these "victims" living for free in their mansions...fuck them too!

Thu, 07/12/2012 - 15:51 | 2610869 Praetorian Guard
Praetorian Guard's picture

North of about 400K. Which is why he thought it was weird that he got this letter. Always on time, and always made payments. Maybe the banks messed up, or they are targeting anyone?

Thu, 07/12/2012 - 16:03 | 2610912 Agent P
Agent P's picture

Bank Error in Your Favor.  Pass Go and Collect $200.

Tell your buddy to fire his CPA and take the deal.  Pay the tax at 1/3 of the benefit received.  He shaves $150k off his debt due and he's pulling over $400k/yr...explain to me how that could possibly be a negative impact on credit...and who the fuck cares if it is?  If he's earning that much and needing credit to get by, he needs a lifestyle adjustment.

Thu, 07/12/2012 - 16:09 | 2610936 Praetorian Guard
Praetorian Guard's picture

Maybe I will. I know he is a traditionalist when it comes to a good credit score, etc. He's an older guy, that has done well with his businesses...

Thu, 07/12/2012 - 17:30 | 2611177 twotraps
twotraps's picture

So he would owe tax on the forgiven debt of $150k?  He's still 100k to the good right?  There must be something else there, why are they offering that now?

 

Thu, 07/12/2012 - 15:58 | 2610896 Northeaster
Northeaster's picture

"I'm just sick of hearing about all these "victims" -

Right, because banks were not taking homes illegally right?

http://www.scribd.com/doc/38591053/Lender-Processing-Services-DOCX-Docum...

Who the fuck went to jail for that bullshit? While DocX is no more, how many fucking banks profited from literally creating assignments, alonges, and whatever the fuck else out of thin air?

How these criminals are not hanging, especially at the hands of those they fucked, escapes me.

Thu, 07/12/2012 - 16:11 | 2610942 Agent P
Agent P's picture

You're talking about wrongful bank foreclosures.  I'm talking about people that have shirked on their obligations and are living in a house free of charge for extended periods of time, only to cry foul when the eviction notice comes. 

Thu, 07/12/2012 - 16:17 | 2610972 waterhorse
waterhorse's picture

62 million clouded titles thanks to MERS.  Got MERS?

Thu, 07/12/2012 - 16:27 | 2610990 Northeaster
Northeaster's picture

I'll agree there's plenty of blame to spread around.

However, what banks did and are doing is criminal by statute, your free-home types is a civil matter (until the point of Trespass), big difference.

Thu, 07/12/2012 - 17:05 | 2611115 Bartanist
Bartanist's picture

By my view the banks collectively fraudulently created the OVERPRICED housing market by allowing loose money. So, because the market was created fraudulently the banks should be forced to pay for their fraud.

Most likely many people could pay for their houses if the banks did not provide loose money and kick the case-schiller over 200 ... when 100 to 110 is normal.

Most people just want a house to live in and their only choice was pay the fraudulently manipulated overpriced amount or not have a house.

Don't blame people for the banks' causing the problem and being stuck with the problem they caused. It was intentional.

Fri, 07/13/2012 - 00:12 | 2611908 Agent P
Agent P's picture

No doubt there were poor lending standards, and the banks deserve to take losses for that.  However, I have never in all my years heard of anyone being forced to buy a house they obviously couldn't afford, refi a shitload of cash out of their home to install granite garage floors, or take on multiple properties at 98% leverage to play the flip game.  The housing bubble was driven by greed on both sides, and both sides deserve the blame.

Thu, 07/12/2012 - 16:32 | 2611023 I Am The Unknow...
I Am The Unknown Comic's picture

Thank goodness for good accountants. 

Any leter from this criminal predator, Skank of Scamerica, should be answered with a certified letter from the homeowner to the bank demanding to see a notarized copy of the warranty deed with the homeowner's original wet ink signature on it.  When (not if, but when) this criminal organization fails to produce said evidence that they have legal standing to even be making the homeowner such an offer, the homeowner should then contact a lawyer and send these buzzterds formal notice that since they have no standing, they will be receiving no further mortgage payments.  That will at least help put a stop to this criminal activity, since there appears to be no law enforcement left in this country.   

BOA Constrictor - n. A predator who issues credit to its prey and when the prey takes the credit bait, the BOA Constrictor then constricts the credit, thus strangling the prey.    

Thu, 07/12/2012 - 16:59 | 2611099 NewAmericaNow
NewAmericaNow's picture

The banks screwed up and didn't keep their paperwork in order and the robosigning cases proved it. If they did not have the note then they couldn't get judgment for forclosure. The plan is trick you into another mortgage where the note won't be lost in securitization and now they will be able to forclose. It depends on people being stupid.

Thu, 07/12/2012 - 18:28 | 2611286 world_debt_slave
world_debt_slave's picture

yep, the banksters never, never, stop scheming to screw you out of your money. The only way to stop this is hang some banksters.

Thu, 07/12/2012 - 22:01 | 2611741 chubbar
chubbar's picture

They are trying to clear the fraud they perpetrated on you by the refinance. It takes away the robosigning, MERS recording and a plethora of other frauds in one fell swoop. Don't fall for it. Get a good attorney versed in these frauds and sue the shit out of them.

Thu, 07/12/2012 - 15:07 | 2610706 Hmm...
Hmm...'s picture

Actually, with how stupid the so called "sheeple" are, I'm surprised none of them took this offer.

perhaps something else is afoot?  Such as:

-customers were UNABLE to take the deal.  For instance, it may have shaved $150k off their loan balance, but still may have left them way upside down.  Or it took $150k off their balance but didn't help their monthly payment.  Most of these people live by the "howmuchamonth" principle.  They don't care about principal, they care only about monthly payment.  Perhaps this needs an appraisal and the appraisal isn't coming in where it's needed.  Lastly, it could be that they are all unemployed and thus have no income.

-perhaps this is window dressing like all other programs from the TBTF banks.  Put out these terrible offers, then when nobody takes it you can pretend you are the vicitm and say "well we tried!".

-less likely, but perhaps people are learning to "strategic default", so that they can stay in their homes rent/mortgage free for 2-3 years before being evicted.

I'd be overjoyed if people were wising up to the banks.  But sadly, I just don't see it in my neck of the woods.  People HATE the banks, but are more than willing to continue to be fleeced by them.

Thu, 07/12/2012 - 15:20 | 2610763 Praetorian Guard
Praetorian Guard's picture

BINGO! Someone is a winner, winner, chcken dinner... actually these properties do require an appraisal. In my buddies case he would have had to come up with 80-100K CASH to allow for the refi since he is underwater. Although he has the resources he indicated he wants to remain liquid. So yes, these properties do require an appraisal which requires $$$$$ up front...

Thu, 07/12/2012 - 15:37 | 2610831 Sancho Ponzi
Sancho Ponzi's picture

This is all about cash flow. If BAC can get 60k people to resume paying their mortgages on what are now non-performing assets, we're talking somewhere between $80-100 million/month in revenue. That's about $1 billion per year which equals about 2% of BAC's Operating Cash Flow. 

Thu, 07/12/2012 - 15:55 | 2610854 Praetorian Guard
Praetorian Guard's picture

True. I don't understand why anyone would even want this. So you are having trouble paying your mort. They offer you 150K reduction. You get an appraisal and your 50K underwater. Before they refi the bank wants this money. So lets say the person has 50K saved. They send them the money. Their mort goes from 500K to 300K, AND they owe the IRS about 30% (on average)  - lets say they owe about another 35-40 grand, for a total of 85-90K. Even if they were able to pay this all down, nothing says that the home debtor may actually default in the future at some point. They would have been better off shit canning the mort saving the extra money and taking 100K+ into the open market and getting a comp house, free and clear... 

Thu, 07/12/2012 - 15:49 | 2610868 Never One Roach
Never One Roach's picture

yep...my buddy paid $780k for a house in 2007 at 7% mortgage rate (that is worth less then $580k today)...wanted to refi but bank wanted 20% of the $580 appraisal up front....he said he may decide to "just walk away" seeing how Wall Street Roaches play...even though he is loaded with cash and can write  check for the entire balance.

 

More and more are defaulting on just about every debt.

Thu, 07/12/2012 - 15:19 | 2610750 vast-dom
vast-dom's picture

3pm market float up DOW in the GREEN! Thank you Mr. Ponzi Bernank!

Thu, 07/12/2012 - 15:19 | 2610758 Stock Tips Inve...
Stock Tips Investment's picture

Indeed, people do not believe in the system. Some think it is cheating. Another part believes that waiting longer, may get more benefits. It's a way to tell the banks: "I give you your own medicine."

Thu, 07/12/2012 - 15:00 | 2610684 Pladizow
Pladizow's picture

This is not isolated to BAC.

Wall St and Washington - nobody trusts any of them!

Thu, 07/12/2012 - 15:12 | 2610726 duo
duo's picture

Almost every one of the sad stories that involved owner suicide or old people thrown out into the street involved a botched modificaton program.  Just about every homeowner knows or have heard one of these stories.  Why is anyone surprised?

What scares me is BofA taking my escrow payment for my property taxes.  What if they "lose" my tax payment, then show up a few weeks later with a tax lein and say they now own my house?

Thu, 07/12/2012 - 15:15 | 2610740 pods
pods's picture

Please don't give them any ideas.

Thu, 07/12/2012 - 15:17 | 2610755 Hippocratic Oaf
Hippocratic Oaf's picture

I'm sure they've practiced this already

Thu, 07/12/2012 - 15:27 | 2610787 ncdirtdigger
ncdirtdigger's picture

Not to worry, I'm sure your money will be held in an escrow at a nice place like MFGlobal

Thu, 07/12/2012 - 17:37 | 2611197 JLee2027
JLee2027's picture

LOL. Post of the Day Material.

Thu, 07/12/2012 - 19:05 | 2611356 skipjack
skipjack's picture

Why are you payimg into escrow ?  Demand to drop escrow and pay your own taxes/insurance.  You do have at least 20% of equity, don't you ?

Thu, 07/12/2012 - 16:32 | 2611024 DosZap
DosZap's picture

Most likely this is just a way to get a REAL,non robo signed contract.

Pulls their testicles out of the fire.

(IOW) they do not have a legit claim to the properties.

Thu, 07/12/2012 - 14:59 | 2610685 chunga
chunga's picture

Fuck you Bank of Amerika

Thu, 07/12/2012 - 15:16 | 2610742 ITrustMyGut
ITrustMyGut's picture

mostly.. its about re establishing paper trail - chain of custody on mortages they cant prove now.. I suspect.. reaffirmation of their right to foreclose in the future becasue robo fail had mucked up the paper..

Thu, 07/12/2012 - 15:16 | 2610743 Hippocratic Oaf
Hippocratic Oaf's picture

BAC doesn't even know which mortgages they own to an extent. This is their (stupid) way to get the gophers to stick their heads out the hole.

Only an idiot would comply. 

Thu, 07/12/2012 - 16:45 | 2611067 giddy
giddy's picture

Oh my... best laugh of the day... kudos and thanks.

Thu, 07/12/2012 - 16:45 | 2610981 waterhorse
waterhorse's picture

I'd like to know what is up with their transfer-game of BOA to BAC to BANA. Any ideas?

Thu, 07/12/2012 - 15:01 | 2610688 barroter
barroter's picture

Am quite sure the package sent to the home owners benefits BoA wonderfully in the end.

Thu, 07/12/2012 - 15:14 | 2610737 ACP
ACP's picture

That's why they should all paste the postage paid envelopes to a brick and send it back.

Thu, 07/12/2012 - 15:01 | 2610689 DanP1966
DanP1966's picture

No bank does ANYTHING where they are not looking to take advantage of the other party to any deal.

HECK......BofA chareges the people I pay with a paper check $6 to cash the check. So I gotta pay them an extra $6 bucks just to cash the check when I am only paying them $10 an hr.

 

Thu, 07/12/2012 - 15:09 | 2610715 Vagabond
Vagabond's picture

Or they could just stop going to bank of america... why do you continue to support people that charge you for your money?

Thu, 07/12/2012 - 15:22 | 2610771 Northeaster
Northeaster's picture

^This

Thu, 07/12/2012 - 17:15 | 2611144 barroter
barroter's picture

Yes, make their money walk to a credit union.

Thu, 07/12/2012 - 15:28 | 2610789 Id fight Gandhi
Id fight Gandhi's picture

Irony - It's very expensive to be poor.

Thu, 07/12/2012 - 15:47 | 2610857 Sean7k
Sean7k's picture

Why don't you pay them in cash? Seems simple enough or you could stop hiring people without bank accounts. Heck, pay them in silver.

Thu, 07/12/2012 - 15:03 | 2610692 SoCalBusted
SoCalBusted's picture

Banks are the folks that give out umbrellas during nice weather and take them away when it rains.

Thu, 07/12/2012 - 15:04 | 2610696 unwashedmass
unwashedmass's picture

fuck you BofA....you take 150K off a mortgage, and then slap 'em with 250K in fines.....

no one trusts you

Thu, 07/12/2012 - 15:07 | 2610710 SoCalBusted
SoCalBusted's picture

They will give you the $150K, then issue the 1099 and then seize your assets on behalf of the .gov for the taxes you will owe on the $150K.

Thu, 07/12/2012 - 15:10 | 2610717 walküre
walküre's picture

So what? Then you don't pay the fine just as you haven't been paying the mortgage. You don't think they know that?

The banks have a mandate to clean up their books. They were given free money from the Fed and they're trying to give the people the money.

I doubt that 60,000 people who didn't understand the process, would benefit from a complete system reset either.

They're just bait for the next great swindel.

Thu, 07/12/2012 - 15:14 | 2610738 crawldaddy
crawldaddy's picture

this is part of the new swindle, and your ready to fall for it.

 

here is a little note to live by.  NO ONE and I mean NOONE comes out of the blue and offers you money, EVER, they make the offer because somewhere in the fine print, they are going to MAKE MONEY OFF YOU.

Thu, 07/12/2012 - 15:24 | 2610779 walküre
walküre's picture

Then let their balance sheets blow the fuck up.

I wasn't expecting them to do a good deed, but their balance sheets are ugly because of the mark-to-myth inventory they're holding. I thought they were given the cash to correct that. Guess not.

Fuck 'em.

Thu, 07/12/2012 - 16:05 | 2610921 eclectic syncretist
eclectic syncretist's picture

They want all the houses free and clear.

Thu, 07/12/2012 - 15:05 | 2610699 Northeaster
Northeaster's picture

Rope & lampposts, politicians, bankers, their lobby and lawyers come to mind when I think of solutions that would end all this fraud. Then again, most of the masses have no idea the fraud upon them.

Thu, 07/12/2012 - 15:05 | 2610700 Mr_Wonderful
Mr_Wonderful's picture

The financial services industry is nothing but a bunch of crooks, swindlers and con artists … at least in the view of many Americans. And it appears that this long-held but unfortunate stereotype may not be too far off the mark, according to survey results released this week by law firm Labaton Sucharow LLP.

http://finance.yahoo.com/blogs/the-exchange/survey-wall-street-crime-sti...

Thu, 07/12/2012 - 15:09 | 2610714 crawldaddy
crawldaddy's picture

yep,  Geee Mr. Smith, let me show you how to make money, first let me take some of your money and then I let you know the secrets....  fucking con men...

As a former wall streeter I tell people the truth, the first step in making money is KEEPING the money you have.  

Thu, 07/12/2012 - 17:18 | 2611148 barroter
barroter's picture

I agree. Financial types are scum of the earth.  A winning smile and Brookes Bros suit isn't going to tease my money into their hands anytime soon.  If fact, I'd probably have a better chance financing a drug trade, better people you know.

Thu, 07/12/2012 - 15:07 | 2610704 walküre
walküre's picture

Wait. They offered to reduce the loans by $150,000 and 60,000 people didn't take that offer?

Wow. Maybe those people shouldn't have been given any loans in the first place. Who cares about the strings. When the banks offer to cut debt, you do the deal. And if you can't pay that either, you can still go BK later-on.

Makes no sense other than showing the utter stupidity of people who got sucked into the mortgage fiasco against their ability to understand the deal in the first place.

This system is built on debt. Money is from debt. The more debt you take on, the more they respect you. If you fail to pay, you say "fuck you" and walk. They will come to their senses and modify the debt because that is what they know.

At the very least, the struggling homeowner could have negotiated to slice $200k or $300k off the loans  ... depending on the size.

What am I missing here?

Thu, 07/12/2012 - 15:11 | 2610724 TideFighter
TideFighter's picture

walkure,

tax liability and credit destroyed, you moron. plus you still owe the note, and on some, must repay the forgiven debt if you sell the property within twelve months, then have to claw back your overpaid taxes from IRS. 

Thu, 07/12/2012 - 15:35 | 2610813 walküre
walküre's picture

BAC can also demonstrate they offered a legit deal. This buys THEM time as they can argue that they tried to "help".

The whole system is FUBAR of course so I don't get your point about any "note". Who cares who has the loan and who cares who has the cash? If one side is no longer complying, the other side will go to hell as well.

Thu, 07/12/2012 - 15:12 | 2610728 crawldaddy
crawldaddy's picture

wow a real live muppet in action

Thu, 07/12/2012 - 15:15 | 2610739 TideFighter
TideFighter's picture

you misunderstood. when it comes to default, go all in

Thu, 07/12/2012 - 15:21 | 2610769 Crab Cake
Crab Cake's picture

Youre missing the fact that at the Main St level people are fed up and dont give a shit about what DC, Wall St, or tbtf say anymore.

Youre missing that there is zero faith left in the hope tank. Youre missing that the government is openly planning on suppressing its subjects because theyre not buying it anymore. Wake the fuck up.

Thu, 07/12/2012 - 15:32 | 2610801 walküre
walküre's picture

I'm awake.

But are you really telling me that 60,000 out of 60,000 BAC customers that were offered a deal are not doing the deal because they're AWAKE?

If that were the case, we would already have the revolution on our hands. Let's be real. They didn't do the deal because they probably can't. Someone else wrote that there were fees or an increase in principal.

Anyway, my mistake. I figured BAC was interested in cleaning up their balance sheets and doing something finally with the FED cash they've been sitting on for so long.

Thu, 07/12/2012 - 16:25 | 2610994 waterhorse
waterhorse's picture

After all we know about how crooked skanksters of amerika is, why are we believing they even sent 60K letters out?  "Their word?"  LOL. 

Thu, 07/12/2012 - 17:03 | 2611114 I Am The Unknow...
I Am The Unknown Comic's picture

They most probably sent 60 K letters out to the same homeowner

Thu, 07/12/2012 - 17:22 | 2611159 moonstears
moonstears's picture

walkure, the fucking banks have no legal right to these homes anyway, pissed title away long ago in MBSs. The owners they are offering to have likely kept making payments, are "current" and likely aware of this. I can see why they'ld balk at such shit from B of A, they wanna know "what's the catch".

Thu, 07/12/2012 - 16:07 | 2610929 eclectic syncretist
eclectic syncretist's picture

You're missing the form a company part where you take on all the debt in the name of a company that then can't pay it's debts, so that you walk away.  That's how they do it.  Failed companies all the way to easy street.

Thu, 07/12/2012 - 16:13 | 2610954 Thisson
Thisson's picture

It's not worth saving 150,000 in dischargeable debt (that you can get rid of in bankruptcy court) to incur 50,000 in non-dischargeable tax liabity (that will follow you around forever).

 

Thu, 07/12/2012 - 16:31 | 2611016 Bartanist
Bartanist's picture

What are you missing?

1. They would have to pay taxes on the amount.

2. They most likely believe that if it is offered by a bank then it is good for the bank and bad for them.... just because this is how banks have historically operated.

3. There is most likely a rider saying that after the loan modification they acknowledge the amount due to the bank regardless of how fraudulent the paperwork and agree not to sue.

4. The offer probably came in an envelope that looked exactly like one of the thousands of credit card application they regularly receive... and they just threw it out with the rest of the trash.

Fri, 07/13/2012 - 02:32 | 2612041 cbxer55
cbxer55's picture

I put them in my powerful shredder, that eats up everything without ever opening the envelope. ;-)

Lately been getting a lot of cc ofers from Barclays. Gee, I wonder why!

Thu, 07/12/2012 - 19:24 | 2611398 Hohum
Hohum's picture

You are missing that the IRS have more power than any other creditor you can name.

Thu, 07/12/2012 - 15:07 | 2610707 Ineverslice
Ineverslice's picture

BAC,

Z  O  M  B  I  .

Thu, 07/12/2012 - 15:08 | 2610709 TideFighter
TideFighter's picture

They are probably all LieBOR notes. Early mitigation, damage control, their mantra: "He who fucks first........"

Thu, 07/12/2012 - 15:07 | 2610711 Griffin
Griffin's picture

No one trusts bankers anymore.

The owner of the only strip joint in Iceland died recently and someone wrote a obituary about him, saying

"His customers were all sorts of people, from bankers and politicians all the way up to honest and decent people"

Thu, 07/12/2012 - 15:08 | 2610712 i_call_you_my_base
i_call_you_my_base's picture

They also sent these by letter, and they porbably looked like every other "mortgage assistance" letter that people have been peppered with already. The whole thing was a half-assed effort and a joke.

Thu, 07/12/2012 - 15:10 | 2610716 Abner Doon
Abner Doon's picture

To Michael Mashburn, SEC and Daniel Stefek, FINRA- both of whom recieved NC Securities Division File No. 12 SEC 84, in late June, who have yet to contact George Hartzman

http://hartzman.blogspot.com/2012/07/forwarded-to-michael-mashburn-sec-and.html

 

Thu, 07/12/2012 - 15:11 | 2610719 crawldaddy
crawldaddy's picture

Hi, Im the bank and I'm here to help, is right up there with the old govt saying

Thu, 07/12/2012 - 15:11 | 2610725 Mr_Wonderful
Mr_Wonderful's picture

Ah, the sweet smell of corporate corruption.

Thu, 07/12/2012 - 15:53 | 2610880 irishlink
irishlink's picture

The banks are unable to foreclose and unable to sell any foreclosed properties as there is no market because there are no jobs and the savings are running low. If they restructure to existing underwater morgage holders they continue the farse for another year or two hoping and praying the economy turns around.

Thu, 07/12/2012 - 16:26 | 2611000 waterhorse
waterhorse's picture

yes, sweet as gangrene.

Thu, 07/12/2012 - 15:12 | 2610727 Piranhanoia
Piranhanoia's picture

Losing faith?, agnostic citizens?  The cheap suits are installing sponges to catch the sweat. Faith will be legally mandated as a tax.

Thu, 07/12/2012 - 15:14 | 2610733 Crab Cake
Crab Cake's picture

Believe the banks? No, fuck the banks, and fuck DC, and fuck Wall St.

What do I want from DC, Wall St, and tbtf? I want to take a golf club and beat them to death.

It is time for regime change in DC, and then we hunt down the criminals like the vermin they are.

Thu, 07/12/2012 - 15:20 | 2610767 pods
pods's picture

I will donate a beautiful 9 iron with an extra stiff shaft.  

Tiger's wife made the mistake of going for the driver.  You need something really dense.

Stay away from the sand wedge, you don't want bounce for this.

pods

Thu, 07/12/2012 - 17:06 | 2611119 catacl1sm
catacl1sm's picture

I do love my sand wedge, though. For reach, a 4 iron. Don't le tthem get away.

Thu, 07/12/2012 - 15:14 | 2610734 michigan independant
michigan independant's picture

"It is clear that the bankers will never be honest with us," he says. "They will never get up and say, 'we are in trouble, you gotta help us;' therefore, you can't trust what bankers say." Walk away from them, no matter what the people at the banks are saying," when things are getting worse. 2011 December

Thu, 07/12/2012 - 15:18 | 2610744 boiltherich
boiltherich's picture

I just had an appointment over at Chase this morning about my empty house upon which I strategically defaulted upon summer 2009 and moved out of March of 2010. I had a call last evening from the local branch on some kind of outreach mission to defaulted homeowners, they seemed like they wanted to help and though I was deeply skeptical I decided to go and see if they had anything new to offer.

What I got was essentially a fundamentalist tongue lashing about my responsibility and the immorality of abandoning a contract just because it did not pan out in my favor.

I laughed in that fat fuckers face, I said that his insolvent bank triggered the default by stealing money from my checking account, lying to me about modifications, failing to negotiate in good faith, and assuming I the consumer will in the end grab my ankles and beg for more because I can't do without their slimeball credit. I told him that if he thought he was going to appeal to morality in a business deal he was even stupider than he looked, and that it would be comical to have a JP Morgan Chase employee lecture me about morality in business dealings if it were not just plain sad.

I ended by saying that I do not give a rats puckered anus what Chase does with it's house, if they continue to harass me I will just change the phone number to an unlisted one. But they are getting bold, once we thought they were being chartered and allowed to do closely regulated business in OUR country, now it is totally clear that we are suffered to infest THEIR nation as long as we pay and pay and put up with being milked like a dairy cow.

Today the banking system of the USA just exponentially increased the potential I will petition the courts for chapter 7 discharge of all debts and upon discharge leave never to return, the America I knew and loved is in the history books and is never going to rise again.

Thu, 07/12/2012 - 15:26 | 2610784 CosmicDebris
CosmicDebris's picture

Tell it!

Thu, 07/12/2012 - 15:42 | 2610836 walküre
walküre's picture

Tell it.

A revolution needs an army.

Armies need funding. JPM & Co. are happily obliging to fund the purchases of guns, guns and more guns and ammo, ammo and more ammo via credit cards and loans.

Take the money. Do something for your country. The only language these fuckers respect is the language of lead.

The Roman Empire supposedly died in part due to lead poisoning of the mind.

The American Empire will die in part due to lead poisoning of the hearts.

Rothschilds and the entire cabal have made their fortunes funding WARS for centuries. They will surely understand.

Thu, 07/12/2012 - 16:07 | 2610930 doc_in_the_house
doc_in_the_house's picture

you were naive for buying into the housing mania ponzi scheme pump

http://www.zerohedge.com/news/everyone-bank-america-we-dont-want-you-steenkin-free-cash#comment-2610772

anyways....as maxine walters so infamously said about the housing ponzi scheme:

"if it ain't broken, don't fix it" LOL !!!! ROFLMAO !!!

and barney frank: "i want to keep rolling the dice on this" LOL !!!!!!

Thu, 07/12/2012 - 19:37 | 2611440 boiltherich
boiltherich's picture

Not on your nelly doc, I knew that residential real estate was in a bubble as far back as 1994 when I was in college for my finance degree, I calculated the median income and what level of house price a median income could pay for and was stunned to see even back then housing was far overpriced.  

So from then till 2008 I waited for that bubble to pop.  I rented and put up with rent increases, I had to sit idly by while the rest of the nation used their houses as ATMS pulling down as much as 20K per month in equity increases.  I still refused to buy.  When the SHTF in 2007 I rejoiced because it was an overnight buyers market but I still waited.  April 2008 I was shown a new never lived in three story zero lot line townhouse style place, identical neighboring units sold for $225,000 a year earlier but this one was now 129,900, that was well below construction cost and the replacement cost by at least 20k.  And because I could get a zero down loan at 6.5% I decided to go ahead and buy though I knew prices and rates could decline a little more they would not go down by a LOT more and later selection might not be as good. 

That alone was the only error.  In the next 12 months value declined to $93,000, and interest rates were down to well under 5%.  I had done the smart thing, I waited.  But, had I been even smarter I would never have been tempted to buy at all even though rents here now are well above the monthly cost of PITI for comprable units.  I say that because in the nieghborhood of 52 houses I bought into and then left there has been one sale in the last year, an identical unit sold for $53,000.  That's fifty three thousand.  Interest rates are now at record lows.

I am betting that there was NOBODY here at ZH even a couple years ago that would have laid a bet interest rates would ever go below 4%.  Most of you thought they would not go below 5%, because only CRAZY people would drive the 10 year under 3 or 2% right?  Now at 149 bps we are fast getting to the 3% level on mortgages.  How long before they are paying people to buy?  Oooooppppss, too late on that score.

Thu, 07/12/2012 - 17:09 | 2611128 I Am The Unknow...
I Am The Unknown Comic's picture

@boiltherich - you may want to consider sending them a Cease and Desist letter to get them to stop contacting you, if the harassment continues.

Thu, 07/12/2012 - 15:16 | 2610746 buzzsaw99
buzzsaw99's picture

My offer is this: nothing. [/corleone]

Do NOT follow this link or you will be banned from the site!