And in this story, also from Diana Olick, we get the lowdown on the real purpose of the deal that transfers wealth from the big banks to the 99%. Well not those of us who were careful you understand, just those who got in over their heads. You know, the people who probably should be renters instead of owners. The people who were classified as sub-prime. The people who had no money to put down, but got homes anyway because the government said that if they didn’t it would be racist discrimination or something.
You and I will probably not be getting that bailout either. We’ll just be paying for it.
Five of the nation’s largest servicers will cough up more than $25 billion, the bulk of which will go toward lowering mortgage principal for borrowers who are behind on their mortgage payments.
Wait a minute.
What does that have to do with faulty foreclosure documents? Nothing.
But the result is that about a million borrowers, many of whom also acted recklessly, are going to get a financial windfall in the form of up to $20,000 in mortgage principal forgiveness. Yes, that will help some of them stay in their homes and prevent some new foreclosures. For the rest of us who didn’t buy more house than we could afford, who didn’t use our homes as ATM machines just because some random mortgage broker said we could, who decided that we should put a down payment on our single largest investment, and who are still mailing in the mortgage check every month despite the home equity we’ve lost, we get nothing.
