Monday, March 8, 2010

Barney Frank's letter to Bank of America and three other large banks

I'm honestly not that much of a Barney Frank fan, but I love his recent letter to the CEO of Bank of America and to the three other biggest bank CEOS, scolding them for being greedy when it comes to second liens that are involved in short sales.

Yes, only an obsessed man deeply involved in a short sale would really pay attention to something like this. But I have personally confronted the avaricious posturing of a major institution that is a second lien holder.

In my case, it happened to be GMAC, not on the list of the Big Four. It was GMAC that wouldn't accept BofA's $3000 offer for release of second lien, and it was GMAC that is squeezing a fairly substantial additional sum out of my coffers -- because they can. And GMAC is one of the sickest financial institutions and a major beneficiary of federal bailouts -- to date, not paid back.

It's a good thing that short sales are getting more attention now that we're getting close to the kick in of the HAFA rules in eary April. Why there was even a front page article in the NYT this morning on this aspect of the mortgage mess that has seemed way too esoteric for the general audience.

As to my own quest, which is supposed to end later this week, today was a day of minor progress. A hopeful initial negotiation with a potentially lethal parasitic lien holder. A scramble to obtain a totally unnecessary document that's being demanded by the title insurance company. But the end is nigh, and chances are decent there's going to be happy ending.

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