Under pressure by Massachusetts prosecutors, Bank of America Corp. said Wednesday it would reduce mortgage-loan balances as much as 30% for thousands of troubled borrowers, in what could presage a wider government effort to encourage banks to offer debt reduction to ease the mortgage crisis.
The plan is one of the boldest moves yet to address the plight of millions of U.S. homeowners who are “under water,” owing more on their homes than they’re worth. It could make it easier for the Obama administration to move in a similar direction with its existing loan-modification program, although senior government officials and many bankers remain very wary of offering to cut loan balances as the main way of helping distressed borrowers.
What about those of us who didn’t suck all the equity out of our homes, bought houses we could actually afford and have paid our bills?
Damn this crap makes me angry…
Untold story: Bank of America is owed $87.7 million Obama’s best supporter the SEIU. The federal government is putting pressure on Bank of America to write off loans. Wonder if SEIU’s huge loan will be written off or written down??? Dirty Chicago politics continues.
Read more: http://www.nydailynews.com/money/2009/04/30/2009-04-30_seiu_prez_bashing_bank_that_gave_union_big_loan.html#ixzz0jDTCEQGU
Why do they get to take money from my family to pay off their stupidity?