If u are up in arms over healthcare bill, have a drink b4 u click this

[mercedes7]

[quote=CA renter]Called it! 😉

—————–
…one has to wonder if they’ve sent them out to everybody, and whether or not every borrower is getting the opportunity to apply for a principal reduction. I wonder if there’s not some kind of program going on behind the scenes where the govt is going to guarantee more than they are publicly admitting for losses on principal reductions. BAC would only have an incentive to mail these out to everyone if somebody (govt?) was making an offer they can’t refuse, IMHO.

http://piggington.com/loan_modificationbac_home_loans%5B/quote%5D

Congrats…you did call it. However, this just tells me that things are not as good as the media and the government is leading us all to believe. Makes me wonder if more and more people aren’t starting to walk away. If people begin to walk away en masse, these banks will be screwed and they know it.

[pencilneck]

“The forgiveness can allow a homeowner to bring the loan value back down to 100 percent of the home’s value over five years, according to the plan, confirmed by sources close to the matter.”

Walking is still a better choice for some, imo. It brings you current immediately, and within 2-3 years you’d be able to buy a new home.

[pencilneck]

“The forgiveness can allow a homeowner to bring the loan value back down to 100 percent of the home’s value over five years, according to the plan, confirmed by sources close to the matter.”

Walking is still a better choice for some, imo. It brings you current immediately, and within 2-3 years you’d be able to buy a new home.

[pencilneck]

“The forgiveness can allow a homeowner to bring the loan value back down to 100 percent of the home’s value over five years, according to the plan, confirmed by sources close to the matter.”

Walking is still a better choice for some, imo. It brings you current immediately, and within 2-3 years you’d be able to buy a new home.

[pencilneck]

“The forgiveness can allow a homeowner to bring the loan value back down to 100 percent of the home’s value over five years, according to the plan, confirmed by sources close to the matter.”

Walking is still a better choice for some, imo. It brings you current immediately, and within 2-3 years you’d be able to buy a new home.

[pencilneck]

“The forgiveness can allow a homeowner to bring the loan value back down to 100 percent of the home’s value over five years, according to the plan, confirmed by sources close to the matter.”

Walking is still a better choice for some, imo. It brings you current immediately, and within 2-3 years you’d be able to buy a new home.

[Anonymous]

If it’s a private business decision by the bank, then there is nothing to be outraged about.

But the interesting question will be how these “gains” are taxed.

20 years from now, when RE has recovered, the homeowner who got the principal reduction sells and realizes a gain. What will the basis be for taxes? And will he get the homeowner’s exemption?

His neighbor who got no break sells for the same price. He sees a much smaller gain (if any) because he paid full price originally.

Does the gov’t give the 1st guy a tax break, on top of the bonus that the bank handed to him?

The people who made these poor financial decisions are getting a nice little retirement nest-egg, while the responsible folks are gonna be stretched thin.

[Anonymous]

If it’s a private business decision by the bank, then there is nothing to be outraged about.

But the interesting question will be how these “gains” are taxed.

20 years from now, when RE has recovered, the homeowner who got the principal reduction sells and realizes a gain. What will the basis be for taxes? And will he get the homeowner’s exemption?

His neighbor who got no break sells for the same price. He sees a much smaller gain (if any) because he paid full price originally.

Does the gov’t give the 1st guy a tax break, on top of the bonus that the bank handed to him?

The people who made these poor financial decisions are getting a nice little retirement nest-egg, while the responsible folks are gonna be stretched thin.

[Anonymous]

If it’s a private business decision by the bank, then there is nothing to be outraged about.

But the interesting question will be how these “gains” are taxed.

20 years from now, when RE has recovered, the homeowner who got the principal reduction sells and realizes a gain. What will the basis be for taxes? And will he get the homeowner’s exemption?

His neighbor who got no break sells for the same price. He sees a much smaller gain (if any) because he paid full price originally.

Does the gov’t give the 1st guy a tax break, on top of the bonus that the bank handed to him?

The people who made these poor financial decisions are getting a nice little retirement nest-egg, while the responsible folks are gonna be stretched thin.

[Anonymous]

If it’s a private business decision by the bank, then there is nothing to be outraged about.

But the interesting question will be how these “gains” are taxed.

20 years from now, when RE has recovered, the homeowner who got the principal reduction sells and realizes a gain. What will the basis be for taxes? And will he get the homeowner’s exemption?

His neighbor who got no break sells for the same price. He sees a much smaller gain (if any) because he paid full price originally.

Does the gov’t give the 1st guy a tax break, on top of the bonus that the bank handed to him?

The people who made these poor financial decisions are getting a nice little retirement nest-egg, while the responsible folks are gonna be stretched thin.

[Anonymous]

If it’s a private business decision by the bank, then there is nothing to be outraged about.

But the interesting question will be how these “gains” are taxed.

20 years from now, when RE has recovered, the homeowner who got the principal reduction sells and realizes a gain. What will the basis be for taxes? And will he get the homeowner’s exemption?

His neighbor who got no break sells for the same price. He sees a much smaller gain (if any) because he paid full price originally.

Does the gov’t give the 1st guy a tax break, on top of the bonus that the bank handed to him?

The people who made these poor financial decisions are getting a nice little retirement nest-egg, while the responsible folks are gonna be stretched thin.

[Huckleberry]

Just saw an snippet on CNBC regarding this.

Per BoA, it’s not going to help very many people. It’s only targeted at sub-prime and pay-option ARM’s, NO prime loans. BoA stated it projects only helping about 45,000 qualifying loans of it’s more than 1 mill.

They may modify the program further but remember, the banks only do what’s in THEIR best interest. I’m sure they have figured out what local RE markets are their worst performing (down 30-50%) and most underwater, only offering these mods to them, as they don’t want these people walking away. Banks have become pretty RE savvy over the last two years…

If you’re in an area where values are only down 20%, I seriously doubt they are going to give you any principal forgiveness, as they know your local market has relative strength, and they prefer short sale or foreclosure.

I can see them writing down 60K on a $200K house in a crappy local RE market with little upside potential, but I can’t see them writing down 150K on a 500K house in a quality neighborhood with decent potential for stability or upside in the next three years.

[Huckleberry]

Just saw an snippet on CNBC regarding this.

Per BoA, it’s not going to help very many people. It’s only targeted at sub-prime and pay-option ARM’s, NO prime loans. BoA stated it projects only helping about 45,000 qualifying loans of it’s more than 1 mill.

They may modify the program further but remember, the banks only do what’s in THEIR best interest. I’m sure they have figured out what local RE markets are their worst performing (down 30-50%) and most underwater, only offering these mods to them, as they don’t want these people walking away. Banks have become pretty RE savvy over the last two years…

If you’re in an area where values are only down 20%, I seriously doubt they are going to give you any principal forgiveness, as they know your local market has relative strength, and they prefer short sale or foreclosure.

I can see them writing down 60K on a $200K house in a crappy local RE market with little upside potential, but I can’t see them writing down 150K on a 500K house in a quality neighborhood with decent potential for stability or upside in the next three years.

[Huckleberry]

Just saw an snippet on CNBC regarding this.

Per BoA, it’s not going to help very many people. It’s only targeted at sub-prime and pay-option ARM’s, NO prime loans. BoA stated it projects only helping about 45,000 qualifying loans of it’s more than 1 mill.

They may modify the program further but remember, the banks only do what’s in THEIR best interest. I’m sure they have figured out what local RE markets are their worst performing (down 30-50%) and most underwater, only offering these mods to them, as they don’t want these people walking away. Banks have become pretty RE savvy over the last two years…

If you’re in an area where values are only down 20%, I seriously doubt they are going to give you any principal forgiveness, as they know your local market has relative strength, and they prefer short sale or foreclosure.

I can see them writing down 60K on a $200K house in a crappy local RE market with little upside potential, but I can’t see them writing down 150K on a 500K house in a quality neighborhood with decent potential for stability or upside in the next three years.

[Huckleberry]

Just saw an snippet on CNBC regarding this.

Per BoA, it’s not going to help very many people. It’s only targeted at sub-prime and pay-option ARM’s, NO prime loans. BoA stated it projects only helping about 45,000 qualifying loans of it’s more than 1 mill.

They may modify the program further but remember, the banks only do what’s in THEIR best interest. I’m sure they have figured out what local RE markets are their worst performing (down 30-50%) and most underwater, only offering these mods to them, as they don’t want these people walking away. Banks have become pretty RE savvy over the last two years…

If you’re in an area where values are only down 20%, I seriously doubt they are going to give you any principal forgiveness, as they know your local market has relative strength, and they prefer short sale or foreclosure.

I can see them writing down 60K on a $200K house in a crappy local RE market with little upside potential, but I can’t see them writing down 150K on a 500K house in a quality neighborhood with decent potential for stability or upside in the next three years.

[Author]

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