Tuesday, January 24, 2012

Now this is interesting. The Associated Press announced that the five biggest mortgage lenders, and we all know by now who they are, have agreed to overhaul the banking business after their deceptive foreclosure practices crippled home ownership in our country. Now get this, a draft settlement between the banks and states has been sent to the state officials for approval. They are generously providing all 50 states with a grand total of $25 billion to distribute to current homeowners that were affected by their actions. Now let me get this straight, These are the same banks that took hundreds of billions of our tax dollars from our treasury. Now they want to distribute $25 billion of that to about 750,000 homeowners that have not been foreclosed upon yet? All the folks that have been tossed out of their homes are just out of luck! Too bad, so sad. Really? So now we have what's left after the carnage eligible for assistance under the deal. That comes out to about $1,800 each. Sounds like its missing a few zeros to me. Let's see . . . You paid $200,000 for a home in 2005. Its now worth $130,000. Your payment is still based on the $200K and they are suggesting maybe giving you $1,800 would help. Sounds like the deal of a lifetime to me.

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