Don’t you just hate when companies (especially banks) announce a new product that will debut sometime in the far off future? Chevrolet did that a few years ago with the Volt electric car. They had a big splashy ad campaign about 3 years ago spotlighting this new car. Honestly, if Chevy would have had any foresight about gas prices rising, then their stock value might be going up as well, as they would have been releasing the car three years ago instead of next month when it will finally hit the highways.
As if distressed homeowners didn’t have enough to contend with, we recently found out from a high level VP at B of A that the short pay re-fi won’t be happening for a while (if ever). Some B of A execs mentioned back in March that homeowners would be able to take advantage of the B of A short pay re-fi in mid-late September. Well, in September we asked, what happened to the short pay re-fi? Our contact said that the product was still under consideration due to “liability issues”.
We think that those liability issues might be the same or similar ones involving the loan mods as well. What banks would find investors who would agree to chop the principal and lower the rate? Apparently not many. Bank of America no, Wells Fargo said that they would not be doing them either.
Most of the short pay re-fi that we hear about would be classified as scams, with only a small percentage of legit ones occurring. Now only if we can get that Volt from the marketing pages into our garage.
Photo by Steve Jurvetson