Saturday, February 5, 2011

Bank of America Modifies Mortgage Loans

Luke Ford writes:

The politicians are a lot more interested in the modification of mortgage loans than the lenders who made the original deals. I don't blame the lenders. Why should they be forced to revise sacred contracts? If somebody can't live up to a deal, they'll have to move out.

Banks are heavily regulated and they can't afford to look too mean so they're hiring thousands of people and firing up the immense paperwork necessary to revise mortgage terms.

Here's the things — banks don't own many of the mortgage loans they've made because they're already sold them. So you might be out of luck.

From the San Jose Mercury News:

Bank of America's new program to enable some homeowners to modify existing Countrywide mortgages may help people stay in their homes — but also could shove borrowers into a new cycle of loan failures, analysts said Monday.

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