Tuesday, October 2, 2012

Bank of America: Debt Forgiveness on Second Lien Mortgages


The Rumor Mill News Reading Room 

Bank of America: Debt Forgiveness on Second Lien Mortgages
Posted By: Jordon [Send E-Mail]
Date: Tuesday, 2-Oct-2012 15:09:08

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Bank of America to forgive 150,000 second liens

Bank of America is erasing the debt on 150,000 second liens for mortgage borrowers in financial difficulty, the lender has announced.
The move completely extinguishes the unpaid balance on second lien debt for qualified homeowners, who are being informed of their eligibility by mail. Mailings to eligible customers began in July.
Customers chosen for the offer will typically be those who are currently in default on their second liens. Bank of America said it is undertaking the measure in order to help eligible homeowners get back on track financially with their primary mortgages and avoid foreclosure.
A small number who are current on their second liens but in difficulty with their primary mortgages will also receive the offer to have their debt erased.
The initiative is one of the customer relief programs Bank of America is initiating in partial fulfillment of its obligations under the $25 billion foreclosure abuses settlement reached by Bank of America and four other major mortgage lenders with federal authorities and state attorneys general.
Second liens will be automatically eliminated for borrowers receiving the offer unless they contact Bank of America within 30 days to opt out. Some borrowers may choose to opt out because there could be tax implications, with the forgiven debt counted as income for tax purposes.
Extinguished second liens will be reported as paid in full and closed, so there should not be any negative effects on borrower's credit ratings, according to Bank of America.
Borrowers will not be able to apply on their own to have second liens extinguished; only those contacted by Bank of America will be eligible. In addition, the program only applies to second liens serviced or held by Bank of America.

11 comments:

Anonymous said...

sgtreport.com posted a link to globaleconomicanalysis.blogspot.ca where Mish spoke of the forgiveness and pointed to a NY times article indicating some form of deception by the banks.

http://www.nytimes.com/2012/09/30/business/when-banks-erase-a-debt-that-isnt-there.html?partner=rss&emc=rss

Reading the article you find out the forgiveness mentioned therein was for debt discharged in bankruptcy. It appears for the amounts forgiven there is a tax implication for the recipient and a credit against the fine for the bank, so they forgive what was discharged saying that even though it was discharged they held the lien and are releasing the lien by forgiving the debt.

Gift horse...mouth
Gift horse...mouth
While access is still available, some may want to catch that article.

Anonymous said...

ALL LOANS BY ALL BANKS NEED TO BE FORGIVEN....since they were ALL SOLD OUT...

Does not matter if someone is paying on it or not....

SO THE ONES WHO ARE BUSTING THEIR ARSHES....get screwed and someone who has defaulted gets the GREEN PASS!

THIS IS NOT FAIR...

ALL should be getting a DEBT FORGIVENESS and not just .5% of the people!

Anonymous said...

You legally incurred a debt, YOU should pay that debt. Not someone else.

Anonymous said...

If you borrow something real and are fully informed you have a ligit. debt. Banks don't lend real money in fact nothing of value is put at risk. The individual is the only one risking anything. Plus his/her sweat equity. the note is than sold that should zero it out then. Plus the bank uses the note as assets to lend out at least 10 times the note. It's fraud no one should be forced to pay a fraudulent debt!!!!!

Anonymous said...

I legally incurred a debt. I paid it then my lender dropped out of the picture without giving it to anyone else. Some bank shows up and says pay me. I say no. I don't, they steal my home.

I had been placed in double jeopardy.
The one wanting payment would not promise to give clear title if I paid them, and would not agree to the terms of the Deed of Trust.

Judge Judy says if you pay someone you don't owe, it's a gift.

How stupid shall we be in honor of our debts but paying those we don't owe?

How criminal can they be, to jump in line for payment and not have any power to carry through the terms that made you purchase the home anyway?

Wake up for real!
It's not about deadbeats.
If you only knew the history behind your payments, you'd have sung a different tune.

It's people like me that helped pull back the curtain.
Wait until you find out all your payments don't guarantee you the home nor the right to let your family inherit it, nor the right to sell it to another.

Then what?

Judge not.
There is more going on than you see, and your prejudice clouds your eyes.

Anonymous said...

Some will opt out because of the criminal tax system and this is called "Debt forgiveness"? Does the sh t ever stop flying? The Orwellian language is alive and well.

Anonymous said...

You better do your research. Nothing legal about it. Besides that, how do you pay a debt with a debt?

"It's not so much the things we don't know that cause us trouble. Too often, it is things we "know" … that aren't true".

siriusvoid said...

I agree.
This is feigned weakness..
An empty conciliatory gesture...
A strategic fall-back position taken by a major criminal bank during the commission of massive fraud.
This whole 'debt consciousness' mentality we all labor under is a PTB created abomination.
Do the words 'In GOD We Trust' mean ANYTHING to US?
If so, we must Trust... and adhere now to GOD's Law.
This system has been predacious from the very beginning...
Skewed to pour ever greater amounts of wealth into coffers of the idle rich...
We couldn't even save our own legitimate earnings...
They printed more $$ to pass amongst themselves faster than we could legitimately earn it.
These folks are the worst kind of CRIMINALS - Treasonous ones.
They need to be relieved of ALL illegitimate power and stolen wealth then cast aside.
Our social system and society does NOT need wealthy and powerful people to operate and control it.
The wealth should be divided equally among US citizens...
Those of US NOT found guilty of treason and fraud that is...

Anonymous said...

WRONG...you did not obtain a loan legally..Ask a bank to produce the books showing a withdrawl from there account and sending it to let's say a title company for the purchase of a home..They can't do it..Its all fraud..your the true creditor and they are the borower...Look up Modern money mechanics..Its a ponzi scheme..PEOPLE NEED TO WAKE UP..I suggest you do the same..if you own a home..you have been Punked also..

Anonymous said...

YOU ARE ABSOLUTELY CORRECT..AMEN PREACH IT...

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