Foreclosure Defense Florida

HOLY SMOKES- BofA to Slash Principal Balances on Mortgages!

Finally, as reported here in today’s edition of the Wall Street Journal, BofA is going to start reducing the principal balance on mortgages.

After being pumped full of billions of dollars in taxpayer money and after acquiring many of the loans that will be reduced for cents on the dollar….reducing principal is just something that makes sense.

Read on and stay tuned….much more on this later. This is a trend that will undoubtedly make its way to other lenders as well!

3 Comments

  • This is interesting, but it remains to be seen whether it will actually happen. Although principal reduction is not part of the standard H.A.M.P. “waterfall” process used to reach that target of 31% DTI, principal reduction has always been an option under H.A.M.P., yet almost never used.

    I agree that in most cases, principal reduction is the only way that staying in the home makes any financial sense for the homeowners or the lenders.

  • Nye Lavalle says:

    Matt, you’re a damn good lawyer and advocate in this fight Now, we both know NEVER to believe what these banksters ever testify to, let alone say.

    Remember, they were to do modifications by law! How many mods have they done? How many reductions in principal are you going to find?

    I’ll believe it (as you will too, I think) when we actually see it and not 10,000 or 20,000 cases, but when we actually see it in masse and find out who’s taking the write-downs!

  • What about homeowners with no mortgage, tons of home equity, but no job?

    They spent 20 or 30 years building up this equity and now they are being shown the door, and in the process losing untold amounts of money because they cannot get through a rough patch yet have so much home equity left the bank is in no danger of losing any money they make available through a HELOC.

    And most of the HELOC money will end up back with the banks anyways in the form of homeowners simply keeping up on their bills.

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