I came across this interesting piece tittled Ten Reasons Not To Bank On (Or With) Bank Of America.
And when I read this (my bolds)
Bank of America foreclosure notices are surging again following a slight robo-signing- related slowdown, meaning they are now sending out a greater increase in default notices (90-day overdue loans) than other banks. The bank has $30 billion in residential mortgage loans in default, which will become foreclosures for thousands of families.
I wondered just how many families that would be. Now, just assuming that each mortgage was for one-half million dollars. I do not know if that is too high or much too high because I do not know anyone who has a house that cost more than $150,000.
But at a half mil per mortgage, after doing the math (twice) it comes out 60,000 families that will be losing their house.
They are your neighbors. They are the folks in that new sub-division over on the west side of town. These are 60,000 real families that by reading the whole story you will come to realize that
Even after lawsuits, B of A would still rather please investors than customers. Investors that won money in the $8.5 billion settlement were upset that B of A was continuing to service loans, instead of foreclosing on them more quickly. Now, B of A had a nasty incentive to kick people out of homes faster, rather than work with them to refinance or restructure mortgages. Two months later, their foreclosure process has, in fact, sped up.
It has been over thirty years since I had an account with BofA.
I met with a mortgage broker friend after I’d made the above post. When I told her the figure of 1/2 million, she thought that was too high. She suggested that the average cost of the foreclosures to be $220,000. Less than half what I’d estimated.
So, I will do the figures (twice) again and round down to the nearest thousand. Vastly different number. It comes in at 136,000 homes being lost to BofA through foreclosure.
And those homes will sit empty for years. My mortgage broker friend said that in some places they are taking bull dozers to the structures.