$26 Billion Deal Could Offer Relief to Home Owners
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.
“I wouldn’t say it’s a panacea for the housing industry but it is good for the banks to get this behind them,” Jason Goldberg, an analyst with Barclays, told The New York Times about the settlement.
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.
The banks involved in the settlement are Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial.
Comment
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Comment by myrle mackenzie on February 10, 2012 at 5:54pm -
If a bank is big and fat they just skip merrily down the yellow brick road while all the unfortunate citizens lose their life savings and homes... truely unbelievable that no one in the government is able to hold these companies truely accountable. very sad.
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Comment by Adam Barrera on February 10, 2012 at 3:05pm -
Sounds like another Bank Bail out to me. A settlement will effectively clear away the trillion dollars in lawsuits they have pending , and clear the way for more foreclosures.
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Comment by Marc St Martin on February 10, 2012 at 2:47pm -
Really...really??? This is going to help who??? 2 grand doesn't put a finger in the d*** for these folks IF you can find them to deliver the check! Just another insult to our intelligence...like this is going to help the housing market...why not use this money to modify loans (principle reductions) to help these folks stay in their homes...oh, yeah...they already foreclosed....just makes me sick!
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Comment by Janet L Bour on February 10, 2012 at 11:45am
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Yes it's going to take something to get out of this mess....holding are market will be stronger for it!
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Comment by Carolann Newton on February 10, 2012 at 11:41am -
REALLY; I know if I lost a serious amount of equity in my home, this would just upset me more. I think it is time that these banks are held accountable, just as any other business is when they wrong people. They will barely miss that money; good grief that make that in fees from their customers in a months time.
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Comment by Chuks Odikpo on February 10, 2012 at 11:38am
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This settlement is more like the tip of iceburg to the problems we have. It's going to take minimum 5 years or as much as 10 years to get out of this 'MESS'. However if you are on the side line watching, this is buyers market and you can't go wrong buying in this market.
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I will believe when I see it!!!!!
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Comment by Robert Brubaker on February 10, 2012 at 11:29am
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Sounds like another " BP " settlement -helping in every way other than what
people need. For "forclosurees" the $ 2,000.00 probably can help with
the current month's rent and some groceries-or maybe credit to the balance
on their deficiency judgement!
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