Rework at least $40 billion in loans

[picflight_IHB]

<blockquote>Bank of America plans to rework at least $40 billion in loans over two years to keep more than 250,000 families from foreclosing.</blockquote>
Kenneth Lewis



<span style="font-size: 13px;">What effect will this have on the dropping value of homes?</span>



<a href="http://www.bloomberg.com/apps/news?pid=20601103&sid=aNKC6e.xnaUQ&refer=us">http://www.bloomberg.com/apps/news?pid=20601103&sid=aNKC6e.xnaUQ&refer=us</a>

 

[stepping_up_IHB]

Paulson pretty much summed it up yesterday when he said that the people who bought more than they can afford are going to lose their home. I like B of A and I suspect that they will do a good job of reworking loans that can be re-worked, but there are too many that just can't afford the house if they have to pay principal and a reasonable interest rate along with the property taxes.

 

[awgee_IHB]

[quote author="picflight" date=1215670120]<blockquote>Bank of America plans to rework at least $40 billion in loans over two years to keep more than 250,000 families from foreclosing.</blockquote>
Kenneth Lewis



<span style="font-size: 13px;">What effect will this have on the dropping value of homes?</span>



<a href="http://www.bloomberg.com/apps/news?pid=20601103&sid=aNKC6e.xnaUQ&refer=us">http://www.bloomberg.com/apps/news?pid=20601103&sid=aNKC6e.xnaUQ&refer=us</a></blockquote>
None. This is PR.

 

[graphrix_IHB]

[quote author="picflight" date=1215670120]<blockquote>Bank of America plans to rework at least $40 billion in loans over two years to keep more than 250,000 families from foreclosing.</blockquote>
Kenneth Lewis



<span style="font-size: 13px;">What effect will this have on the dropping value of homes?</span>



<a href="http://www.bloomberg.com/apps/news?pid=20601103&sid=aNKC6e.xnaUQ&refer=us">http://www.bloomberg.com/apps/news?pid=20601103&sid=aNKC6e.xnaUQ&refer=us</a></blockquote>


That would equal 5% of the people that are in default in Coutrywide's [strike]mortgage[/strike] toxic pools. And, it is getting worse, so that percentage will drop. The number $40bil sounds big, but it is only a tiny portion of what is in default.