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THE BANK SETTLEMENTS ARE GOOD FOR WHOM?
~The bank settlements good for whom, not the homeowners
Will homeowners really benefit from the settlements? Bank of America was just handed a fine of 17 billion, but what does that mean for the homeowners they threw into a crisis? According to the government, if homeowners accept any reduction on their mortgages, they could end up paying taxes on the amount is deducted from their mortgage. And by the way, very little of that 17 billion fine for fraud and corruption by Bank of America- does not go for homeowners relief. The bank agreed to only 7 billion on helping 1. Struggling homeowners – but there is a catch here and there isn’t enough money to help everyone. Surprise anyone 2. Community work 3. Lowering mortgage balances on borrowers whose mortgages more than their house is worth. Wonder how that happened?
But, if the bank does all that, these underwater homeowners will be looking at big tax bills for any amount Bank of America slices off. And of course, Bank of America has this plan of using fine money from this to loan out to new borrowers. So, who wins on that deal? More loans for Bank of America to collect on. Wow, talk about circling the block. The same goes for the settlements made with Citigroup and J.P. Morgan Chase. Associate Atty. Gen. Tony West said, “it’s only a temporary fix the fund isn’t large enough to cover every potentially affected consumer” and more good news people – this could take years to get this piddly amount off the table. Look at what happened with the J.P. Morgan help relief- or Citigroup. The money is moving but in what direction? More corporate jets – executive compensations – bonuses – parties anyone? By the way, homeowners – that doesn’t include you.
This article is an opinion – the contributor is not an attorney- this is not intended to give advice.
