Illegal or just unethical? Walking away from your mortgage...

[ignerntbend]

Sorry but I still disagree, it was the banks and the realtors that talked up the ARM accounts.
Knowing full well that these people couldnt afford these houses they were trying to sell (professionals taking advantage of simple civilians)'
Still my same theory they (the professionals) knew property values were going down ( or should have).
Now walking away, I dont agree with that either, especially if its pre-planned.
Working with the banks ( they cant sell this property at what They have in it) seems to be a reasonable idea.
Yes the days of a handshake as an agreement goes both ways...and neither are holding thier part of the bargain, its more like ..lets dupe the stoopid fockers and make them pay ...foreever
So I guess its which side of this you are on thats tells the tale ..!

Again, we don't have enough information, but it seems that both parties sighned a legal document. Now the bank owns the house. Did the bank under estimate what the house would be worth when the bubble broke?

Lawdy those bankers have been taken advantage of. My church will start a fund raiser for them. I'll drop an extra dollar in the plate for them next Sunday

We don't need the government bailing out these banks. You and I, through the kindness of our own hearts, and our charitable Christian spirit will help them persevere some how some way

 

[twoguns?]

Again, we don't have enough information, but it seems that both parties sighned a legal document. Now the bank owns the house. Did the bank under estimate what the house would be worth when the bubble broke?

Lawdy those bankers have been taken advantage of. My church will start a fund raiser for them. I'll drop an extra dollar in the plate for them next Sunday

Well seeming like thats what the banks job is ..to make money..if they didnt know ...shame on them.
Look at it his way if the housing market wouldd have went the other way and the borrowers ...were all of a sudden able to sell thier houses at a ....Huge profit..pay the banks off early ..avoid that ridiculous interest...now who would be ...in the crapperhole.
OH SNAP..they went into the crapperhole on thier own...greedy bastiches

 

[Billybob]

June 8, 2010
Bank of America fined $108 million

By ALAN ZIBEL The Associated Press

WASHINGTON - Bank of America will pay $108 million to settle federal charges that Countrywide Financial Corp., which it acquired nearly two years ago, collected outsized fees from borrowers facing foreclosure.

Bank of America is to refund $108 million to about 200,000 borrowers with Countrywide Financial who, federal officials say, paid inflated fees when they were facing foreclosure.

Bank of America settled charges that Countrywide Financial, which it acquired nearly two years ago, collected outsized fees from borrowers facing foreclosure.
About 200,000 borrowers are in line for refunds totaling $108 million.
The settlement with the Federal Trade Commission was the latest evidence of misconduct at Countrywide, a fallen mortgage industry giant. Countrywide hit borrowers who were behind on their mortgages with fees of several thousand dollars at times, the FTC said.

It's the latest evidence of misconduct at Countrywide, once an industry giant that has since fallen. Last year, three top executives, including former CEO Angelo Mozilo, were charged with civil fraud and insider trading by the Securities and Exchange Commission.

The settlement, which seeks to refund money to about 200,000 borrowers, was announced Monday by the Federal Trade Commission. It is the largest mortgage industry settlement for the agency, which oversees non-banking functions such as debt collection.

The FTC's chairman, Jon Leibowitz, accused Countrywide of "callous conduct, which took advantage of consumers already at the end of their financial rope."

Bank of America purchased Countrywide in July 2008. The actions in the case took place before the acquisition.

http://www.pressherald.com/business/bank-gets-_108-million-fine_2010-06-08.html

 

[twoguns?]

Thank You, BillyBob,

 

[ignerntbend]

Thanks Billybob. You are increasingly difficult to classify

June 8, 2010
Bank of America fined $108 million

By ALAN ZIBEL The Associated Press

WASHINGTON - Bank of America will pay $108 million to settle federal charges that Countrywide Financial Corp., which it acquired nearly two years ago, collected outsized fees from borrowers facing foreclosure.

Bank of America is to refund $108 million to about 200,000 borrowers with Countrywide Financial who, federal officials say, paid inflated fees when they were facing foreclosure.

Bank of America settled charges that Countrywide Financial, which it acquired nearly two years ago, collected outsized fees from borrowers facing foreclosure.
About 200,000 borrowers are in line for refunds totaling $108 million.
The settlement with the Federal Trade Commission was the latest evidence of misconduct at Countrywide, a fallen mortgage industry giant. Countrywide hit borrowers who were behind on their mortgages with fees of several thousand dollars at times, the FTC said.

It's the latest evidence of misconduct at Countrywide, once an industry giant that has since fallen. Last year, three top executives, including former CEO Angelo Mozilo, were charged with civil fraud and insider trading by the Securities and Exchange Commission.

The settlement, which seeks to refund money to about 200,000 borrowers, was announced Monday by the Federal Trade Commission. It is the largest mortgage industry settlement for the agency, which oversees non-banking functions such as debt collection.

The FTC's chairman, Jon Leibowitz, accused Countrywide of "callous conduct, which took advantage of consumers already at the end of their financial rope."

Bank of America purchased Countrywide in July 2008. The actions in the case took place before the acquisition.

http://www.pressherald.com/business/bank-gets-_108-million-fine_2010-06-08.html

 

[Billybob]

BofA has been fined several times now, and it's being said it will not be here in 2014. But do the math, $108mil.divided by 200,000 equals $540 right, that's not going to save anyone's home or help them get back into one is it?

Here's another example...

[B of A Signs HUD Pact Over Mortgage Abuse

The Department of Housing and Urban Development has reached a settlement with Bank of America that releases the company from liability for failing to adequately provide alternatives to foreclosure on 57,000 delinquent government-insured mortgages.

The agreement, a draft of which was obtained by American Banker, was previously undisclosed. It has been forged on a separate but parallel track from continuing settlement talks between Bank of America, state attorneys general and other regulators over alleged mortgage origination and servicing failures.

B of A’s pact with HUD requires it to waive a minimum of $10 million in unpaid mortgage payments and vet each of the 57,000 delinquent borrowers for a possible loan modification, short sale or other foreclosure alternative.

“Our total costs for the program will be multiples of that” $10 million minimum, B of A spokesman Dan Frahm said. The deal calls for measures to “ensure these customers have every opportunity to stay in their homes,” he added.

After such outreach, the settlement paves the way for B of A to foreclose on homes that borrowers could not afford even after a mortgage modification and those that have been left vacant by owners.

Wow, it really pays to be a criminal.

$10 million divided by 57,000 = $175.44
(and this is without taking out the attorney’s fees and costs)]

http://4closurefraud.org/2011/08/07...failure-to-offer-alternatives-to-foreclosure/

 

[AKguy1985]

I'd say its unethical and possibly illegal

 

[Billybob]

The answer to both questions would depend on the specifics of the situation wouldn't it?

 

[ignerntbend]

The answer to both questions would depend on the specifics of the situation wouldn't it?

True. We don't know the situation. In fact BillyBob, you're the only person in the thread who has linked to any actual information

 

[1shott]

Tough call in most cases. While not criminal, it is at least a civil matter. They entered a contract with a bank, part of the terms of agreement stated the house/land was collateral for the loan, stop paying the loan, the bank can legally come and take away the house/land and evict you.

I have recently went thru this with a house on my road, people bought house, move in, trash house, get the big home buyers check from the .gov, along with the tax breaks for 4 kids and went out and buys new ATVs for everyone in the house with the money. They then decide they dont want the house, fight amongst themselves and leave house, trashed and destroyed. Bank takes almost a year to reclaim the house, in which they returned several times to use the yard as a dump, I cant even describe the smell. Bank finally steps up and cleanes up the house and now has it listed for sale again, rinse and repeat...

Some people are not meant to be home owners.