Is this right with load modifications are banks really letting people get buy with this?

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This really upsets me.
in 2002 we bought new construction home, our neighbor Bud bought his home the same time same price of 150k each. I put 20k down and got a interest rate of 6.75%, Bud my neighbor did not put anything down and got a 7.5% apr. In 2006 Bud got a cash out refinance and cashed out 60k but his new rate was 8.75. With that extra income he bought a boat, went on exotic vacations, big pool in his back yard. he tried to convince us to line us up with his lender at Saxon mortgage so we could cash out. I did not feel like it we have nice things as both myself and my wife worked our tails off. A year ago Bud was laid off of his job he then stomped around, well a few months later he got another job that paid him much more and he was back to spending. Three months ago he tried to modified his loan with Saxon mortgage, they came back and said his income is enough to support his payments. He waited six weeks to file again but he made up a check stub showing a lower salary and also threaten if they do not help him he will walk away from the home. The home is worth now 130k. Well the company gave in and agreed to modified his rate to 3% 800 dollars off a month, his payment is now lower then my payment. He is planning on taking his wife to Bali this winter with the savings. In my opinion it is like he stole 80k., is this what banks are doing

2 Comments
  1. Reply
    Ryan M
    April 30, 2011 at 1:12 am

    This is NOT only what the banks are doing, this is what the Great Obama is begging them to do! He wants banks to modify the loans of people who viewed their home as an ATM and YOU will have to pay for it. Who cares that you agreed to pay your mortgage faithfully. What help does the government give to responsible people….none! Be irresponsible and you get Welfare, Unemployment, forced loan modifications, soon to be health insurance at MY expense, etc.

  2. Reply
    Hunks_By_Hoss
    April 30, 2011 at 1:27 am

    No it isnt, and your neighbor is full of manure…

    If he has no equity, he was in no position to negotiate a low interest loan like that.

    A bank, when threatened with a walk-off… FORECLOSES… not grants the additional loan…

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