• Space/Science
  • GeekSpeak
  • Mysteries of
    the Multiverse
  • Science Fiction
  • The Comestible Zone
  • Off-Topic
  • Community
  • Flame
  • CurrentEvents

Recent posts

AI and the superconducting relativistic monkey collider RL July 26, 2025 10:14 pm (Off-Topic)

Trump's namecalling is no match for the Scots BuckGalaxy July 26, 2025 2:15 pm (Flame)

Retirement home Spirit cover -- yeah, we had better music. ER July 26, 2025 7:31 am (Off-Topic)

Maxwell's Silver Hammer ER July 26, 2025 6:58 am (CurrentEvents)

♫ I tell you to enjoy life I wish I could but it's too late ♫ BuckGalaxy July 22, 2025 1:32 pm (Off-Topic)

How Groupthink Protected Biden and Re-elected Trump, or put another way... BuckGalaxy July 19, 2025 2:32 pm (Flame)

Why Trump Can’t Shake Jeffrey Epstein BuckGalaxy July 18, 2025 8:07 pm (CurrentEvents)

Colbert cancelled. ER July 17, 2025 8:20 pm (CurrentEvents)

just passin' thru... ER July 16, 2025 2:08 pm (Space/Science)

Massachusetts Sues 5 Major Banks Over Foreclosure Practices December 3, 2011 6:53 pm RobVG

Massachusetts Sues 5 Major Banks Over Foreclosure Practices

Banks can only sell the foreclosed homes at the now depreciated market value- or less. They are taking the same loss as if they were to write down the current homeowner’s loan. And get this, they don‘t take a loss either way.

A real life example:

30 year loans at 5%

Value before collapse = $375000
Monthly payment (interest and principle) = $2000
Interest paid (bank profit) after 30 years = $350000

Now when the bank writes the home down either for a bank owned sale or for the struggling home owner (doubtful):

Current market value = $250,000
Monthly payment = $1300
Interest $233,000

Reduction in profit = $117,000

This reduction is equivalent to the original loan at an interest rate of 1.75% which is 3X the rate the banks pay us on a 12 month CD.

This baffles me because the banks are going to take the hit anyway because they can’t sell the home for more than market value and a most cases they take it the shorts (pun intended).

Why not work with the homeowner who would see a reduction of $700 in their monthly payment? Now banks are letting the home rot for months or renting it for ½ of the rental price of comparable homes in the area. Banks should partner with homeowner, especially since these assholes got us in this mess in the first place!

  • Maybe it's moral. by Robert 2011-12-03 19:02:43
    • Except the loan sharks were willing to work with the borrower when it was to their mutual interest. Maybe ... by ER 2011-12-03 19:14:45

    Search

    The Control Panel

    • Log in
    • Register