WASHINGTON—Bank of America CEO Kenneth Lewis agreed to give back his $24.8M bonus to Legal Aid Mortgage Relief Advocacy. CFO Gary Crittenden of CitiGroup agreed, “donating my $19.4M bonus to pay down 700 blue collar families’ loans, is just the right thing to do.” – April Fool’s!
WALNUT CREEK — The revamped federal program recently touted by our politicians that helps homeowners who are underwater on their mortgages to refinance won’t work for Sarah B. and her husband.
The Walnut Creek couple bought a home in the in the Larkey Park area for $770,000 in 2006. Today they owe $638,000 on a house that’s worth $441,000, according to a Contra Costa County property appraiser.
Specifically, President Obama asked Congress to enact “a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage, by refinancing at historically low interest rates. No more red tape. No more runaround from the banks.”
DO YOU HAVE AN EXTRA SIXTY YEARS TO PAY DOWN YOUR PRINCIPAL?
The Feds expect the homeowner to take their $3,000 a year in savings and pay down their mortgage. Don’t hold your breath. And how many $3,000 a year savings would it take to pay down an underwater mortgage of $190,000? About 60 years.