Banks make money on every foreclosure even if you never make a payment.

The math

For a 200k loan you pay 2% points, this years taxes upfront, next years taxes up front, pmi insurance up front. Or approx.

4k+2k+3k+.5k=9.5k or $9,500

You never make a payment and the bank forecloses.

The bank pockets $9,500.00 rights off every single cent plus some including the police to throw you out. The pmi insurance pays the bank every single penny of the loan. The bank made a bare minimum $9,500.00 and write offs worth at least $50,000.00 then sells your home for $50,000.00 or whatever pockets all that money and is left with the option to keep paying back the money at around 1% WHICH is what they borrowed it for or pay it all back in a lump sum.

So the bank pay themselves 16 billion in bonus’s take the tarp of 750 billion and get another 2.5 trillion for whatever.

Wake up America and do the math! It is all a big lie!