[quote=Huckleberry]My thought on this is BofA announced it will do this because of the litigation and settlement. I’m sure they figure if they state they are voluntarily doing this, they will not be mandated by the govt to do it.
It’s really hard for me to believe the banks would just take the hit (write-off) completely, and just expunge the borrower of the original obligation and lost loan value.
I would speculate they will minimally lower the principal loan amount (from original) and work some sort of deal where they get compensation on the end of the loan. Maybe making new mortgages a 40 or 50 year and the interest fixed a 6.
I’ll bet the new program is along these lines…[/quote]
You know, no offense to some of you older farts…I sort of chuckled when I heard some folks in their mid 40ies or 50ies getting a 30 year loan.
But….How does a bank justify a 40 or 50 year loan for someone that is in their mid forties or older? Do the banks really expect someone to work until 85-95???
LOL..Sorry, not that I’m trying to make fun of older people. But I always though 30year loans were pushing it already beyond a certain age. But a 40 or 50 year loan?
Perhaps banks will start adopting a loan program such that it makes your kids co-sign.
