The dust is beginning to settle after the federal government and 49 states agreed to settle with five banks over allegations of fraudulent foreclosure documents. The deal will pay homeowners who lost their homes some money and will allow people facing foreclosure the opportunity to have the interest or the principal lowered on their mortgages. But how much impact can that make? And will it only speed up the process of getting more homes onto the market, which will push prices even lower?
What does this settlement mean for those who are currently involved in litigation over a deficiency after a short sale with a bank not on the list of banks settling with the AG?Sheri –Feb 14, 2012 09:54:44 AM
I was one of the few to do a mod last time. they made my rate fixed 2.5 % for 5 year then 4% for the remainder. But they also turned my 30 year to a 40 year, and put a bunch of fees on the back of the loan. I am over 125% on what i owe verse market value, Could I Qualify for a principle reduction? Rob –Feb 14, 2012 09:43:22 AM
Isn't it convenient for BOA that they sold a large amount of their loans to Green Tree last year. Joy Lane –Feb 14, 2012 09:37:05 AM
It sounds like you need to be near foreclosure to get the principal reduction. We're under by 150%, but we can squeak by with the mortgage we set up (owner occupied). We bought in 2005 when we both had good jobs. My layoff in 2008 has us not investing much for retirement, etc. Note, we bought the house how everyone should have ("What if one of you lost your job can you afford your mortgage")...The 150% hurts with 23 years left. Even with refinancing at a lower rate, we wont get our investment back.Joy Lane –Feb 14, 2012 09:24:33 AM
Excuse me, I meant to say that my four siblings are underwater on five mortgages.Ben –Feb 14, 2012 09:13:04 AM
The Attorney General keeps saying that this is the first step. What are our next steps? How can citizens get involved & help? I have four siblings who are underwater on their mortgage, and it makes me sick to know that these banks have made hundreds of billions of dollars while people like my family continue to suffer.Ben –Feb 14, 2012 09:10:50 AM