BofA to slash mortgage balances by $100,000 or more

[Danny Day]

Just announced today that BoA will be slashing deliquent home loans upwards of $100,000.

How does this make you feel? I personally feel like this bank should have gone under.

Does this bother anyone else that BoA took a bail out, and is now distributing $$$ to deliquent home owners?

[Jon Holdman]

I'll feel better about all this when those of us who have been making payments, regardless of the value of our house, and who are not underwater get a nice big fat check, too.

Think about it. Two people buy a $500K house in Jan 2006. First one gets a 100%, 30 year, 6.25% loan. Second one puts down 20% and gets a 15 year, 5.75% loan. Fastforward to now, seven years later. The value has fallen to $350K. The first owner owes $458,684.43. The second owes $279,540.63. The first gets a $100K check, in the form of forgiveness (presumably tax free) of the debt. The second gets nothing. Yet the second is the own who's actually suffered the pain because they've actually put the money out. The first got off easy by being able to buy a house they couldn't really afford. Now they get a gift. While the one who bought a house they could afford gets nothing. I know life isn't fair, but this is grossly unfair.