Daily Real Estate News | Thursday, February 09, 2012
After months of tense negotiations, the nation’s five largest banks and state and government officials have agreed to a $26 billion settlement aimed at holding banks accountable for the mishandling of some foreclosures.
The settlement is expected to help 1 million home owners, by having lenders reduce their mortgage debt or refinance into lower mortgage rates to reduce costs of their monthly payments. Also, about 750,000 people who lost their homes to foreclosure from September 2008 to the end of 2011 are expected to receive checks for about $2,000. The aid from the settlement will be distributed over the next three years, The New York Times reports.
Details of the settlement still need to be finalized, including how many states will participate. Also, federal officials say the final figure could move upwards to $39 billion. Mortgages owned by Fannie Mae and Freddie Mac will not be part of the deal.
Source: “States Negotiate $26 Billion Deal for Home Owners,” The New York Times (Feb. 8, 2012)
- Federal Blockbusters : By the Numbers: the New $26B Homeowners Settlement (curbed.com)
- Banks reach $25 bln mortgage settlement: report (marketwatch.com)
- Banks Near $25B Mortgage Abuse Settlement (newser.com)
- Faulty Mortgages And Fraudulent Foreclosures Have Cost The Big Banks $72 Billion And Counting (thinkprogress.org)Thinking of buying or selling?For all your real estate needs
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