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  • October 6, 2008 at 2:39 PM #14099
    orthofrancis
    Participant

    Bank of America has taken an extrememly aggressive foreclosure prevention strategy. It will limit mortgage payments to no more than 34% of gross income. My question is – what happens to all of the rest of the money owed? Does BOA just increase the length of the mortgage, or just take the loss? I would think that on some houses, the income would make for rather lengthy payment terms – 90+ year mortgages, where people would just walk.
    http://money.cnn.com/2008/10/06/real_estate/Drastic_plan_slashes_mortgage_costs/?postversion=2008100616

    Please no party discussion/blame faults, etc. Just keep the discussion to BOA, and how this strategy may, or may not work.

    thanks

    October 6, 2008 at 3:57 PM #282270
    lookingagain
    Participant

    It sounds to me as though BofA will be writing it off. What I would like to see (although it could never happen) is to have all principal write-downs be recorded as sales. Otherwise, those who bought at the inflated prices get the break but those of us who waited out this insanity still have to deal with the absurd prices that sellers still think their home is worth.

    October 6, 2008 at 3:57 PM #282552
    lookingagain
    Participant

    It sounds to me as though BofA will be writing it off. What I would like to see (although it could never happen) is to have all principal write-downs be recorded as sales. Otherwise, those who bought at the inflated prices get the break but those of us who waited out this insanity still have to deal with the absurd prices that sellers still think their home is worth.

    October 6, 2008 at 3:57 PM #282578
    lookingagain
    Participant

    It sounds to me as though BofA will be writing it off. What I would like to see (although it could never happen) is to have all principal write-downs be recorded as sales. Otherwise, those who bought at the inflated prices get the break but those of us who waited out this insanity still have to deal with the absurd prices that sellers still think their home is worth.

    October 6, 2008 at 3:57 PM #282594
    lookingagain
    Participant

    It sounds to me as though BofA will be writing it off. What I would like to see (although it could never happen) is to have all principal write-downs be recorded as sales. Otherwise, those who bought at the inflated prices get the break but those of us who waited out this insanity still have to deal with the absurd prices that sellers still think their home is worth.

    October 6, 2008 at 3:57 PM #282606
    lookingagain
    Participant

    It sounds to me as though BofA will be writing it off. What I would like to see (although it could never happen) is to have all principal write-downs be recorded as sales. Otherwise, those who bought at the inflated prices get the break but those of us who waited out this insanity still have to deal with the absurd prices that sellers still think their home is worth.

    October 6, 2008 at 4:05 PM #282291
    PadreBrian
    Participant

    hahah, us guys who waited get funked again.

    October 6, 2008 at 4:05 PM #282572
    PadreBrian
    Participant

    hahah, us guys who waited get funked again.

    October 6, 2008 at 4:05 PM #282598
    PadreBrian
    Participant

    hahah, us guys who waited get funked again.

    October 6, 2008 at 4:05 PM #282614
    PadreBrian
    Participant

    hahah, us guys who waited get funked again.

    October 6, 2008 at 4:05 PM #282626
    PadreBrian
    Participant

    hahah, us guys who waited get funked again.

    October 6, 2008 at 4:34 PM #282311
    Huckleberry
    Participant

    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.

    Here is an article by MM related to how CW/BofA is structuring their mortgage modifications:
    http://mrmortgage.ml-implode.com/2008/09/03/countrywidebofa-conspire-against-a-borrower-shareholders/

    I’ll bet the new program is along these lines…

    October 6, 2008 at 4:34 PM #282592
    Huckleberry
    Participant

    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.

    Here is an article by MM related to how CW/BofA is structuring their mortgage modifications:
    http://mrmortgage.ml-implode.com/2008/09/03/countrywidebofa-conspire-against-a-borrower-shareholders/

    I’ll bet the new program is along these lines…

    October 6, 2008 at 4:34 PM #282618
    Huckleberry
    Participant

    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.

    Here is an article by MM related to how CW/BofA is structuring their mortgage modifications:
    http://mrmortgage.ml-implode.com/2008/09/03/countrywidebofa-conspire-against-a-borrower-shareholders/

    I’ll bet the new program is along these lines…

    October 6, 2008 at 4:34 PM #282635
    Huckleberry
    Participant

    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.

    Here is an article by MM related to how CW/BofA is structuring their mortgage modifications:
    http://mrmortgage.ml-implode.com/2008/09/03/countrywidebofa-conspire-against-a-borrower-shareholders/

    I’ll bet the new program is along these lines…

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