Bank of America now says that if a borrower can prove he can no longer pay his mortgage or that he owns few or no assets, it will waive its right to a deficiency judgment at the sale. In other words, that borrower will be off the hook to pay any of the money owed over and above the sale price.
This is just another business decision by the bank to avoid the government’s interference with Obama’s new “entitlement” program, Making Home Affordable, which essentially says that lenders are required to participate in the foreclosure-prevention program that will slash mortgage payments from those borrowers who are unemployed for at least 3 months up to six. Borrowers must owe at least 1.5% more than their home is worth to qualify and must be current on their payments.
Bank of America took $45 BILLION dollars of taxpayer money to bail them out and returned all of the money on
Our founding fathers believed in the free enterprise system. Right now we do have a cultural war in this country. 30% are of the mindset that believe that taking from those who have or who are responsible citizens should be given to those who aren't or those who won’t.
We have two units in foreclosure in my building and this has affected all the rest of us here as we have to pick up all their condo fees. Everyone should be responsible for his/her own actions and be accountable. Bank America will allow owners to stay in their homes until the short sale takes place. This would be a win for our condo building as our fees would be paid and the unit would be maintained.
Thomas Jefferson said to beware of government’s economic control. “Experience has shown, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny.”
Bank of America took its own action and it makes sense. It has also learned and paid a big price from the experience…up the standards for those wanting to borrow.
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