From 24/7 Wall St. · Jake FitzGerald · · 1m 20s
Dave Ramsey Calls Bank of America a Cesspool After $1.2 Billion Fine
Dave Ramsey targets Bank of America after its $1.2 billion fine for compliance failures.
In brief
Dave Ramsey targets Bank of America after its $1.2 billion fine for compliance failures. Dave Ramsey advises a Phoenix homeowner to stop paying loans after Bank of America received a $1.2 billion fine for compliance issues. Originally reported by 24/7 Wall St..
Ramsey's Cesspool Critique
Dave Ramsey called Bank of America a cesspool after its $1.2 billion fine for compliance failures.
“It is truly a cesspool”
Phoenix Homeowner's Situation
James owns a Phoenix rental worth 400 thousand with $260 thousand mortgage and $100 thousand HELOC.
Bank's Compliance Fine
Bank of America received a $1.2 billion fine for failing to monitor trillions in transactions and unreported suspicious activity.
Ramsey's Short Sale Plan
Ramsey advised the homeowner to stop paying loans and challenge the bank to collect after refusal.
Arizona Anti-Deficiency Law
Arizona's law shields homeowners from deficiency judgments but HELOCs are not purchase money loans.
Sale Price Scenarios
Selling at $400 thousand leaves $40 thousand equity after costs; $380 thousand leaves $6,600 short.
Bank's Collections Strategy
Bank of America can pursue $60,000 shortfall after foreclosure auction brings $300 thousand.
Action Steps for Homeowners
Calculate net equity, check state anti-deficiency rules, compare price cuts with deficiency judgments.
At a glance
Dave Ramsey advises a Phoenix homeowner to stop paying loans after Bank of America received a $1.2 billion fine for compliance issues.
