General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCNBC poll: Is it fair that you have to be behind on your mortgage to get mortgage break?
The banks got a bailout. Now it's homeowners' turn.
Bank of America [BAC 7.7538 -0.2062 (-2.59%) ] is offering qualified "underwater" customers mortgage principal reduction of up to $150,000.
It's all part of the $25 billion settlement reached this year between federal and state agencies and the nations five largest mortgage servicers over fraudulent foreclosure practices.
STREET POLL QUESTION:
Is it fair that you have to be behind on your mortgage already to be eligible to apply for the principal reduction?
http://www.cnbc.com/id/47340235
so far 90% say no.
taught_me_patience
(5,477 posts)But they had to limit the priciple write-downs somehow. The vast majority of mortgages are current... so if you allowed writedowns on current mortgages, BofA would go bankrupt.
leftyohiolib
(5,917 posts)ErikJ
(6,335 posts)I think its fair. The banks were clearly predatory and it will help the economy as Krugman claims.
National Mortgage Settlement: States, Big Banks Reach $25 Billion Deal -Huff Post
The U.S. government announced Thursday a $25 billion settlement with five of the nation's largest banks over charges of systemic and widespread mortgage fraud, in what is being billed as the largest-ever deal on such charges.
The settlement could potentially help more than 1 million struggling homeowners, according to government officials. It is the largest multi-state agreement since the nationwide tobacco settlements in 1998.
Though the deal does offer some money -- up to $2,000 -- for those who lost their homes during the housing bust, its primary thrust is forward-looking, offering partial loan forgiveness or "principal reduction," to struggling homeowners. More details on the agreement can be found at this government website.
"[The deal] benefits struggling homeowners now, not some time in the future when the help they need may be too late," said Bob Ryan, a senior official at the Department of Justice in a call on Thursday morning.
Officials were careful to note that the deal does not end the government's investigation into the housing bust.