One of our listener’s sent us a copy of this letter and asked us to post it. Given the nature of the topic and the issue, we have agreed with posting in hopes to get some comments on where our other listeners and readers stand on this issue. Please comment!
March 25, 2010
Brian Moynihan, CEO
Bank of America
100 North Tryon Street
Charlotte, NC 28202
Dear Mr. Moynihan:
I cannot begin to tell you how upset I am with Bank of America.
I just learned that you may forgive a portion of a mortgage principal for some mortgage holders. It appears that good people like me that have the ability to pay will receive no assistance whatsoever. That is a problem because for people like me it is not about the ability to pay, it is about being held hostage by the severely underwater property.
It is your bank’s greed that caused the housing bubble and burst. People like me – not a flipper – have lost 60% of the value of our homes because your bank simply dumps foreclosures in the market while the government bails you out. Meanwhile I cannot accept jobs out of my area because I cannot sell my deeply underwater home. I cannot move to a bigger home – which I need – because I cannot sell my deeply underwater home. I will likely not see the value of my home return to what I paid for it until I am well into retirement. Meanwhile you expect me to throw my money away for the next 25 years and jeopardize my ability to retire as I had planned. A principal reduction for people like me makes this problem go away because it levels the playing field.
Make no mistake – I did not cause this – Bank of America and other banks did.
If you choose not to reduce the outstanding mortgage principal for people like me, strategic defaults will only continue. That will continue to inhibit the housing market recovery and your bank will be no better off because you will only end up owning more foreclosed homes – and you know this!
Your position does not make financial sense whatsoever. Indeed I am certain a class-action lawsuit can successfully illustrate that Bank of America knowingly and patternly caused the bubble and burst and now knowingly is introducing bias into how it handles underwater mortgages. It will be impossible to find an impartial jury because you have negatively impacted everybody. Your bank is the villain here and I am positive a jury and judge will see it that way.
I certainly would love to hear that Bank of America saw the error of its way and offer a principal reduction to all – regardless of their financial situation. It is unconscionable that you would force some of us to ruin our credit through a strategic default while you have not truly solved anything.
Andrew (Additional information withheld at request of submitter)