New Bank of America foreclosure prevention tactic

[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.

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…

[meadandale]

I’m thinking of calling Citi Mortgage and telling them that I don’t want to pay my mortgage anymore if they don’t write down my principle at least a hundred grand. Otherwise I’ll just hand them the keys. Think it will work?

[meadandale]

I’m thinking of calling Citi Mortgage and telling them that I don’t want to pay my mortgage anymore if they don’t write down my principle at least a hundred grand. Otherwise I’ll just hand them the keys. Think it will work?

[meadandale]

I’m thinking of calling Citi Mortgage and telling them that I don’t want to pay my mortgage anymore if they don’t write down my principle at least a hundred grand. Otherwise I’ll just hand them the keys. Think it will work?

[meadandale]

I’m thinking of calling Citi Mortgage and telling them that I don’t want to pay my mortgage anymore if they don’t write down my principle at least a hundred grand. Otherwise I’ll just hand them the keys. Think it will work?

[meadandale]

I’m thinking of calling Citi Mortgage and telling them that I don’t want to pay my mortgage anymore if they don’t write down my principle at least a hundred grand. Otherwise I’ll just hand them the keys. Think it will work?

[jficquette]

[quote=lookingagain]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.[/quote]

Actually, you could use this to back into it. If you know the median house income you could multiply by 34% for the payment x 360(assume 30 yr loan) and then discount it back for the value using say 6.5%

John

[jficquette]

[quote=lookingagain]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.[/quote]

Actually, you could use this to back into it. If you know the median house income you could multiply by 34% for the payment x 360(assume 30 yr loan) and then discount it back for the value using say 6.5%

John

[jficquette]

[quote=lookingagain]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.[/quote]

Actually, you could use this to back into it. If you know the median house income you could multiply by 34% for the payment x 360(assume 30 yr loan) and then discount it back for the value using say 6.5%

John

[jficquette]

[quote=lookingagain]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.[/quote]

Actually, you could use this to back into it. If you know the median house income you could multiply by 34% for the payment x 360(assume 30 yr loan) and then discount it back for the value using say 6.5%

John

[jficquette]

[quote=lookingagain]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.[/quote]

Actually, you could use this to back into it. If you know the median house income you could multiply by 34% for the payment x 360(assume 30 yr loan) and then discount it back for the value using say 6.5%

John

[nostradamus]

[quote=jficquette]
Actually, you could use this to back into it. If you know the median house income you could multiply by 34% for the payment x 360(assume 30 yr loan) and then discount it back for the value using say 6.5%
John[/quote]
That’s seeing the glass half full!

SD Median Income: $64k
Gross: ~$46k
Monthly: ~$3800
div3 = $1267
x12x30 for a 30-year: = $456k paid to bank (including interest)
reverse amortize (take out the interest) => with 20% down, 6% interest, the median home price should be: $264,500.00

Maybe BoA is trying to tell us something?

[nostradamus]

[quote=jficquette]
Actually, you could use this to back into it. If you know the median house income you could multiply by 34% for the payment x 360(assume 30 yr loan) and then discount it back for the value using say 6.5%
John[/quote]
That’s seeing the glass half full!

SD Median Income: $64k
Gross: ~$46k
Monthly: ~$3800
div3 = $1267
x12x30 for a 30-year: = $456k paid to bank (including interest)
reverse amortize (take out the interest) => with 20% down, 6% interest, the median home price should be: $264,500.00

Maybe BoA is trying to tell us something?

[nostradamus]

[quote=jficquette]
Actually, you could use this to back into it. If you know the median house income you could multiply by 34% for the payment x 360(assume 30 yr loan) and then discount it back for the value using say 6.5%
John[/quote]
That’s seeing the glass half full!

SD Median Income: $64k
Gross: ~$46k
Monthly: ~$3800
div3 = $1267
x12x30 for a 30-year: = $456k paid to bank (including interest)
reverse amortize (take out the interest) => with 20% down, 6% interest, the median home price should be: $264,500.00

Maybe BoA is trying to tell us something?

[nostradamus]

[quote=jficquette]
Actually, you could use this to back into it. If you know the median house income you could multiply by 34% for the payment x 360(assume 30 yr loan) and then discount it back for the value using say 6.5%
John[/quote]
That’s seeing the glass half full!

SD Median Income: $64k
Gross: ~$46k
Monthly: ~$3800
div3 = $1267
x12x30 for a 30-year: = $456k paid to bank (including interest)
reverse amortize (take out the interest) => with 20% down, 6% interest, the median home price should be: $264,500.00

Maybe BoA is trying to tell us something?

[Author]

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