BofA cramdown update: free money anybody? … anybody?
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How many BofA cramdown offers have you personally witnessed?
- None. (86%, 100 Votes)
- 1-2. (10%, 12 Votes)
- 5 or more. (3%, 3 Votes)
- 3-4. (1%, 1 Votes)
Total Voters: 116
The first batch of Bank of America’s (BofA’s) principal reduction offers was sent out to 60,000 qualified borrowers in the U.S. this May. Borrowers at least 60 days behind on their mortgage payments were offered an average $150,000 cramdown. BofA is expected to make a total of 200,000 principal reduction offers by August.
These cramdown offers are part of BofA’s efforts to meet the terms of February’s $25 billion national industry settlement resulting from the epidemic of fraudulent home loan originations and subsequent foreclosures. BofA has remained closed-lipped as to the precise criteria for electing which lucky borrowers are given the offer.
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About The Author
Ed Gauronski
is a past member of the first tuesday Editorial Staff.
![free-money[1]](http://firsttuesdayjournal.com/wp-content/uploads/free-money11-106x75.jpg)
![Copy-2-of-iStock_000006824774Large[1]](http://firsttuesdayjournal.com/wp-content/uploads/Copy-2-of-iStock_000006824774Large1-106x75.jpg)
Thank god…finally a cramdown!!! right ON! You go Kamala Harris!
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it is important to remember that it wasn’t BofA that ‘alluringly coaxed’ buyers into this mess, it was Countrywide. Surely they regret that purchase, as do ALL BofA stockholders (myself included).
in the interest of accuracy it is important to recall that BofA has always been a tough place to get a loan…that’s why Countrywide was so easily able to grow so large so fast…they didn’t underwrite the loans and they rarely said no to even the shakiest borrowers.
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Finally, the great majority of the American people are awakening to the massive and almost inconceivable fraud that has been perpetrated upon them by the banking elite not only just since 2008, but for centuries!
A group of Swiss scientists have run a super-computer program to ascertain the ties between banks and corporations worldwide. What they came up with is truly startling–a tiny handful of corporations controls–by means of cross-ownership and control–a staggering 80% of all the world’s wealth.
And here is what is even more startling: The most powerful inner group of that small circle of controlling corporations are banks. And, it doesn’t end there. The controlling banks are all owners of the FED. Yes, the FED is NOT and never has been a government agency, but is a privately held corporation whose owners are the big banks.
Information is coming forth from a new book just out (authored by a government official who was there behind the closed doors in 2008) explaining how obsequiously Hank Paulson, Timothy Geithner, and other government officials bowed to the whims of the banking elite during the crisis and ended up serving THEIR needs, not the needs of the American people.
The LIBOR scandal is the shot across the bow. It will continue to expand, as local, state, and federal governments bring lawsuits against the criminal parasites (bankers) that have sucked the life blood of mankind for far too long.
The goal will be to break the back of the Banking Cartel and finally free us all from the immoral and criminal manipulations that it perpetrates.
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Cram downs are not the answer! It is unfair to reward irresponsible borrowers and punish those that have always behaved responsibly.
BofA will be a small drop in a bucket. Fannie/Freddie have just refused to take part, and rightfully so!
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I have seen a couple of these in our law office. Specifically, on one, it was for the junior loan, a full forgiveness of the debt. On the surface, looks good right? Not so quick, even with forgiving the entire balance, the first was underwater by another 100k and the entire transaction was purchase money and the first was in foreclosure. In reality, the junior loan was already DOA, did not have any recourse and they were able to use the settlement money on a transaction they had already fully lost and they knew the borrower was walking away. What was also included in the letter was their lovely reference to providing the IRS with a 1099 for the forgiveness and reporting on the credit of the borrower of the forgiveness. This is pretty damn smart of them. They are using the settlement funds allocated to pay off loans they already lost on. These guys are smart as can be. This is not help for the consumer.
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