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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veyron's picture

why is this a surprise to anyone?

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!!

JLee2027's picture

It's a trap than. bocksucking casterds.

hooligan2009's picture

that would be castards :)

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?

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*)

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.

cbxer55's picture

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

NidStyles's picture

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

Andre's picture

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

robertocarlos's picture

I love it when people bite themselves in the ass.

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.

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

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 ...

zhandax's picture

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

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

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. 

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.

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

 

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!

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.

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. 

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.

NotApplicable's picture

Ding! Ding! Ding! Winnah!

Rainman's picture

clever and probably correct theory

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.

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...

azzhatter's picture

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

waterhorse's picture

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

I Am The Unknown Comic's picture

The VENEREAL Bank of America

There, fixed it for ya! 

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.

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.

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.

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.

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.

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.

chunga's picture

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

Joe Davola's picture

Shoulda worn my cup today.

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.

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.

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#!

 

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.

goldfish1's picture

 over is when?

 

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

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.

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...