Posted on 07/19/2012 9:36:36 PM PDT by lbryce
Banks are slowing foreclosure rates yet again, and it isn’t because they are out of borrowers to foreclose on. With the settlement earlier this year, banks began to clear out their existing REO inventory, and they slowed foreclosures in the Southwest in order to modify mortgages to meet their requirements under the settlement (note the uptick in cancellations last month). Ideally, the banks would like to modify loans to keep borrowers in place and complete short sales for those who want to leave. They don’t want to resolve there legacy toxic loans by foreclosure. Unfortunately, borrowers are not cooperating. Borrowers benefit more by squatting until a foreclosure.
BofA Give-Away Has Few Takers Among Homeowners: Mortgages
When Bank of America Corp. sent letters to 60,000 struggling homeowners offering to slice an average $150,000 off their loans, the lender got an unusual response from most of them: silence.
I think most people recognize these are bait-and-switch tactics of the banks. Lenders generate big headlines about giving away free money, but when the borrowers apply, they are offered something far less palatable. However, the lack of response goes beyond a basic distrust of the bank’s motives.
Homeowners who fell behind on their payments began receiving the mailings in May, part of the bank’s effort to meet terms of the $25 billion industry settlement over foreclosure abuses. More than half haven’t responded as “borrower fatigue” causes them to tune out the offers, said Dan Frahm, a spokesman for the Charlotte, North Carolina-based bank.
This is more than borrower fatigue. Most people aren’t going to respond because they benefit more by simply squatting until the foreclosure. Underwater borrowers are not completely stupid. Many recognize a loan modification is paying more for their house than it’s worth.
(Excerpt) Read more at ochousingnews.com ...
Our second property’s loan is with BofA.
We have tried with every new program to refi, last time.....took four months and the day before we were to sign they said “oh wait, no”.
They in general are hideous to deal with.
We bought our current home from a person who was short selling and their loan was held with BofA, it took six months to close even though we were putting 35% down.
Ok, I looooooath BofA.
First off the banks have been provided multiple ways to put their bad loans on the backs of the American Taxpayer. Some directly through Obama’s sham programs. And then of course the FED is buying a lot of it.
2nd many of these loans are NON-Recourse. That means that the bank can get nothing except the house if they foreclose. As I understand it then if someone goes for one of these programs then the loan becomes A Recourse loan. The borrower is liable for any balance left even after the house is sold.
BoA is super slimy. Avoid at all costs.
They have been a real up-and-comer on most “Top X Most Hated Companies in America” lists.
I have no experience with them; but given the enormous body of evidence, I will be doing my best to keep it that way.
“As I understand it then if someone goes for one of these programs then the loan becomes A Recourse loan. The borrower is liable for any balance left even after the house is sold.”
In some areas (CA), this type of loan is not permitted AFAIK.
Gosh, it must be Bank of America’s fault.
If I had to decide between a world without Occutards, and a world without BoA, it would be the latter, hands down.
Thanks lbryce.
It is entrapment into an upside down home value that was forced by the mortgage banks NOT BY the real estate market, Mortgage holder cannot sell and is trapped by embezzlement of his home value by the lending institution.
bump
All the BofA branches in my town were closed today due to bomb threats... all of them.
I’ve hated them since they were The Bank of Italy.
I worked at a major employer in 1975 when I discovered that the Bank of America had a problem with their new computer programming concerning double-charging my employer’s account for the same check being cleared.
After months of hard work detailing all the items—which finally totalled over $100,000, we finally got a ‘conference’ with the B of A in their building. Me & my boss against 6 on the B of A side.
It was a long meeting and sometimes quite contentious.
We finally proved tht I was correct. They were charging twice for the same checks.
My employer got their money back.
I got a letter in my permanent personnel folder that said “I was difficult & stubborn”.
I went into business for myself about 4 years later as a bookkeeper.
If I interviewed with a prospective client & found out that they banked with B of A, I declined the client.
I won’t do any business with B of A.
Good for you. I know bookkeepers who hold similar opinions. They claim the hassle of dealing with BoA just isn't worth it.
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