The NY Times is reporting that BOA will be forgiving some mortgage debt by invitation only. You can expect that this will not be out of any sense of altruism or generosity. They will assess the markets and determine which properties they absolutely do not want to take back into inventory after a foreclosure sale where no one shows up to bid. In my view, this will be a very limited program for the most marginal neighborhoods or for subprime loans where the lender has the highest risk of loss or predatory lending claims. I view it as something that is really for the bank’s benefit and will only create false hopes for most homeowners who will not get a principal reduction. Here is the story.

Alana Semuels wrote an interesting piece in the LA Times business section about post-foreclosure eviction: “Many borrowers in default stay put as lenders delay evictions.”

The Associated Press is reporting that an Ohio man apparently bulldozed his home which was in foreclosure. The first thing I thought when I first heard this story being reported on New York radio was that the man made a mistake by letting his anger and frustration get the better of him. He will still be personally liable on mortagage and tax liens. The personal liability will end up becoming money judgments. Here is the story.