[HOME ] [ABOUT] [PHOTOS] [VIDEO] [BLOG] [HOUSTON] [TEXAS] [U.S. NEWS] [WORLD NEWS] [SPORTS] [POP CULTURE] [CONTACT]
Bank of America to forgive up to $100,000 of homeowners' mortgage debt
by Joseph Earnest May 8, 2012
Newscast Media WASHINGTON, D.C.—Whether it is out of fear of being found in violation of the recent settlement with the Justice Department, or out of being genuinely contrite, America's largest bank, Bank of America is allegedly forgiving and canceling up to $150,000 of debt owed by homeowners.
This move comes as an after effect of being sued by Barack Obama, through the Justice Department, for committing fraud and misrepresentation against homeowners, and also using deceptive means while foreclosing on homes. I have enclosed the entire lawsuit at the end of the document that can be read or download.
You have to give Obama credit for fighting mortgage fraud, and compelling the banks to address it, which is something I'm sure has angered the banks. However, at the end of the day, whether Obama is re-elected or not, he can be at peace with himself for having made an effort to stop the bleeding when fraud was rampant in the mortgage industry, and it is a decision he can live with.
Obama doesn't use the word "fraud", he uses words like: misconduct, improper behavior, misrepresentation, violation of homeowners' rights, false information, unlawful foreclosures, unfair practices, wrongful conduct, deceptive practices, and many more terms. Yet we know that the above phrases are a polite way of accusing the banks of fraud. It softens the blow for the banks when "euphemisms" like deceptive practices or false information are used instead of fraud and forgery.
In Texas, if one commits forgery, one is immediately guilty of up to 20 years in jail with hard labor. See Chapter Two of this particular law: Texas Penal Code Title XIV Offenses Against Trade, Commerce ETC - Chapter 2: Forgery of Land Titles, Article 947. [550]). (pop-up)
This means that even attorneys who submit defective documents with either a back-dated notary stamp, or a blank endorsement stamped on the Note (robo-signing) would be found guilty and could even be arrested on the spot without trial, by the Sheriff's department, if the fraudulent documents were forwarded to the relevant authorities.
The banks feel that "sugar-coated" words do not make them look bad, as opposed to the actual hardcore phrases describing their conduct. That way, once the dust settles, it is easier at a press conference for bank executives to say: "We corrected the wrongful conduct of our employees and agents," than it is for executives to say, "We corrected the fraud and forgery committed by our employees agents."
One of the widely-known methods to seize properties was through "robo-signing" which is the automated signing of documents, which is a fraudulent act, without actually reviewing the contents of the signed document.
Executives at Bank of America say they will begin mailing 200,000 letters
offering certain customers mortgage principal reduction.
"If people get
these things and toss them, they won't be eligible," says Ron Sturzenegger, the
Bank of America executive charged with providing solutions to borrowers in need
of mortgage assistance.
According
to CNBC, in order to qualify for the modification, the borrower must answer the letter
with full documentation of income, showing that under the terms of the
modification they can still make the monthly payment. A borrower with no income
would therefore not qualify. A borrower’s current monthly payment must be more
than 25 percent of gross income, and the borrower must show they are unable to
afford that.
Not all of the 200,000 borrowers who receive the letters are expected to
respond CNBC reports. Executives say there is a level of fatigue among delinquent borrowers
who have already received several notices or who may have gone through a failed
modification process. Some borrowers simply don't want to stay in their
homes, while others may think the offer is a scam.
"They have been
contacted by a lot of other people, and this offer may appear too good to be
true," says Sturzenegger
The bank has staffed up to handle the task, with 50,000 employees manning servicing desks, but the process will clearly take a lot of time.
Bank of America has suspended any foreclosure actions against these 200,000
borrowers until the process is complete, which might take up to two years.
|
|
Join the Newscast Media social networks
for current events and multimedia content.
Copyright© Newscast Media. All Rights Reserved. Terms and Privacy Policy