Ever read a news story that pisses you off ... only to go read the comments and get even
more riled up?
Yeah? Well, here's my venture into
that particular world for this weekend:
Sac Bee: Backlash Against Banks...For a guy like me who wants, overall, to see mortgages foreclosed
faster rather than modified (read: delayed), the article is just painful. But then I get to the comment from someone with the moniker of "cwraider." Dated 9/6/09 @ 5:53:07pm, it reads thusly:
My two cents: State workers (wife and me) -- Countrywide home converted to BofA. 480K original loan -- now assessed at 240K. Nevertheless with the 14% drop in income we missed two months (not in a row - over a 6 month period). Did get BofA to reduce int. from 6% to 4% fixed. Now bad news...original loan was 30 yrs. Now we are at 40 yrs, plus the two pmts were added to the loan -- yes we are paying slightly less than original (including taxes and insurance) but with a 40 yrs term -- BofA is making out. Moreover, apparently BofA and Countrywide haven't completely converted their systems and even though we are paying on time Countrywide is reporting us delinquent -- go figure. My question to anybody out there -- what happened to three years of interest only payments? (approx. 75K). Essentially we went from 30 - 3 (27 yrs) to a 40 fixed. Thanks.
The emphasis above is mine.
What happened to three years of interest-only payments?Seriously?
It went to the bank, cwraider. It was
interest only. Your $75k was the pure profit you paid to Countrywide/BOA for the honor of taking out a death-wish loan on a home you had no business buying (or refinancing).
Most of the time I run the other way when folks talk about implementing policies to "protect people from themselves." But I really can't argue with the fact that the failures in the current system have been widespread, and immense.
Labels: Homeownership