Bank of America is in the process of finalizing the deal in acquiring Countrywide Financial. Along with the Countrywide deal, B of A stands to inherit all of Countrywide’s baggage and this is no carry on bag for your favorite weekend getaway.
It’s a super duper, toxic sludge bag of mortgages with sprinkles of good loans here and there.
Yes, there are quite a few good loans in their trillion dollar mortgage pool. But let me tell you all something folks, good loans do not go bad and a lot of loans are going bad in Countrywide’s servicing bag of tricks.
So, when Bank of America announced that they were acquiring Countrywide, I cringed in disbelief.
My thoughts went like this. Do they truly have an idea of the sleeping monster that they have just invited in bed with them? Do they have any idea how much baggage and crap that they are getting in this deal?
Then I said to myself, these guys are bankers and they make tons of money, wear nice suits and live in glass houses, as the rest of us in main street America are choking on the very loans that they sold us. They must be smart, right? Or sick……………….
When I look at Countrywide’s massive $1.48 trillion servicing portfolio and the amount of delinquent mortgages, I get scared. It’s literally frightening to look at it.
Foreclosures pending continued a relentless rise, however, growing 16 basis points in February to 1.64 percent when expressed as a percentage of unpaid principal balance — more than double the 0.8 percent rate a year ago.
Foreclosures pending as a percentage of loans serviced increased 8 basis points, to 1.13 percent — or roughly 102,000 loans.
All told, 9.1 percent of Countrywide’s $1.48 trillion servicing portfolio — 724,000 loans totaling $134.5 billion — is either delinquent or in foreclosure.
All told, 9.1 percent of Countrywide’s $1.48 trillion servicing portfolio — 724,000 loans totaling $134.5 billion — is either delinquent or in foreclosure.
That is $134.5 billion dollars of loans going bad folks. Moe doesn’t sugar coat nothing. It is what it is. $134.5 of potential foreclosures, write downs and misery.
A lot of people are behind those mortgages. Not just homes and loans. Real people, like you and me.
Families and children that are scared of what the future holds. Parents so stressed out that they can’t properly care for their children or perform well at work. Some are drowning their sorrows with alcohol and numbing their fears with drugs. Depression and anxiety go hand and hand with foreclosure.
This isn’t just about money. It’s about people who are suffering at the mercy of these loans.
Yes, some are dead beat debtors. Some may deserve to lose their homes. But most truly do not deserve what they are going through.
Bank of America just announced that it plans to work-out approximately $40 billion of loans in trouble at Countrywide as part of it’s acquisition of the failed mortgage lender.
Bank of America estimates that the $40 billion will result in a little over a quarter-million homeowners keeping their homes instead of losing them to foreclosure.
This is a bold statement by Bank of America and I plan to take this statement very seriously. I will follow this closely and I plan to report the facts as they come.
Here are some more claims from Bank of America.
In addition to foreclosure prevention efforts, the combined company will continue Bank of America’s policy of permitting tenants to continue living in properties subject to foreclosure for 60 days after the completion of foreclosure proceedings. If the tenant voluntarily leaves the property within 30 days of the completion of foreclosure proceedings, they will receive a $2,000 cash-for-keys payment to help defray moving expenses.
“We will continue to work with distressed borrowers to match the customer’s repayment ability with the appropriate loss mitigation option, including loan modifications, forbearance’s, repayment plans, lower rates and principal reductions,” McGee said. “We will not assess new late charges for customers in foreclosure and we will waive certain other associated fees, when permitted.”
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If this is so why haven’t they helped me?
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I work in a loan modification company, and Bank of America’s customer service reps say Bank of America is not modifying any loans at this time.