The $25 billion settlement between the U.S. government and state attorneys general and the country’s five biggest banks for foreclosure processing problems that came to light about 18 months ago gives lenders three years to provide financial relief to financially troubled home owners.
NAR doesn’t have a position on the settlement, but its leadership has said it hopes the resolution helps more struggling homeowners stay in their homes, and that the settlement provides lenders the certainty they need to proceed again with loan modifications, short sales, and foreclosures, which will help support the housing market recovery.
Here are some details on the settlement:
- The banks will dedicate $20 billion toward various forms of financial relief to borrowers.
- Of that amount, $10 billion will go toward reducing the principal on loans for borrowers who, as of the date of the settlement, are either delinquent or at imminent risk of default and owe more on their mortgages than their homes are worth.
- At least $3 billion will go toward refinancing loans for borrowers who are current on their mortgages but who owe more on their mortgage than their homes are worth.
- Up to $7 billion will go towards other forms of relief, including forbearance of principal for unemployed borrowers, anti-blight programs, short sales and transitional assistance.
Read details of the settlement from the U.S. Attorney General’s office.
NAR video on background on the foreclosure problems.
Access the full video of President Obama’s remarks on the settlement.
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[...] Foreclosure Settlement: Billions to OwnersSpeaking of Real Estate (blog)Foreclosure Settlement: Billions to Owners Like this:LikeBe the first to like this post. from → Anaheim California Real Estate, Anaheim Home Values, California Real Estate, Distressed Home Owners, Garden Grove Home Values, Home Values in Anaheim, … [...]
It’s nice to know the government has a plan for all this. Thanks for your post.
Thanks for this post. Good thing the government has finally taken action! This will be a relief to home owners.
[...] Foreclosure Settlement: Billions to Owners This entry was posted in USA by David Simon. Bookmark the permalink. [...]
[...] can learn more about the settlement in three ways: 1. From NAR 2. At the newly-launched “National Mortgage Settlement” website 3. In the article, “What [...]
[...] with the ink barely dry on the $25 billion foreclosure settlement between the U.S., states, and the country’s biggest banks, the likelihood of mortgage [...]
[...] proper reviews. Banks have changed some of their methods in processing foreclosures. Also, the $25 billion foreclosure settlement, announced last week, among the nation’s five largest banks and state attorneys general is [...]
[...] announcement comes on the heels of a $25 billion settlement last week that will require major banks — including Citigroup — to settle allegations of foreclosure [...]
[...] proper reviews. Banks have changed some of their methods in processing foreclosures. Also, the $25 billion foreclosure settlement, announced last week, among the nation’s five largest banks and state attorneys general is [...]
[...] proper reviews. Banks have changed some of their methods in processing foreclosures. Also, the $25 billion foreclosure settlement, announced last week, among the nation’s five largest banks and state attorneys general is [...]
[...] proper reviews. Banks have changed some of their methods in processing foreclosures. Also, the $25 billion foreclosure settlement, announced last week, among the nation’s five largest banks and state attorneys general is [...]
[...] with the ink barely dry on the $25 billion foreclosure settlement between the U.S., states, and the country’s biggest banks, the likelihood of mortgage [...]
wow this is good news. plus lower interest rates. I love 2012
[...] proper reviews. Banks have changed some of their methods in processing foreclosures. Also, the $25 billion foreclosure settlement, announced last week, among the nation’s five largest banks and state attorneys general is [...]
[...] announcement comes on the heels of a $25 billion settlement last week that will require major banks — including Citigroup — to settle allegations of foreclosure [...]
What is wrong with all you people!!?? This will not help. My God, why do you all think the government is helping? They are the cause of it all, they are keeping it all going, these mtg. assistance programs are a scam! The only principle reductions I have seen in 4 1/2 years are on short sales. Selling for a lesser amount is their principle reduction. NO one gets that. In fact if a deal is made to keep the homeowner in their home, their principle goes UP. Besides, where the hell do you think the 25 billion is coming from!? We do not have the money. It is being printed to fund nothing more then a ponzi scheme with proceeds going to banks and Obama. You’re all insane to support this crap. MILLIONS and MILLIONS are losing their homes. Nothing is clearing out. Get your dam heads out of the sand. I have to pay this association to support this nonsense and it makes me sick. Thanks for nothing NAR.
[...] the uptick in REO activity, however, “we’ll be keeping a very close eye on the effects of theattorneys general settlement with servicers, as it could dramatically change the flow of REO properties moving through the foreclosure [...]
[...] the uptick in REO activity, however, “we’ll be keeping a very close eye on the effects of the attorneys general settlement with servicers, as it could dramatically change the flow of REO properties moving through the foreclosure process [...]
[...] the uptick in REO activity, however, “we’ll be keeping a very close eye on the effects of the attorneys general settlement with servicers, as it could dramatically change the flow of REO properties moving through the foreclosure process [...]
[...] the uptick in REO activity, however, “we’ll be keeping a very close eye on the effects of the attorneys general settlement with servicers, as it could dramatically change the flow of REO properties moving through the foreclosure process [...]
[...] settlement means to you MSNBC – Mortgage relief deal reached as holdout states join in Realtor.org – Foreclosure settlement billions to owners The Economist – Unsettling CNN – Real estate mortgage settlement foreclosures Forbes [...]
[...] the uptick in REO activity, however, “we’ll be keeping a very close eye on the effects of the attorneys general settlement with servicers, as it could dramatically change the flow of REO properties moving through the foreclosure process [...]
[...] the uptick in REO activity, however, “we’ll be keeping a very close eye on the effects of the attorneys general settlement with servicers, as it could dramatically change the flow of REO properties moving through the foreclosure process [...]
[...] the uptick in REO activity, however, “we’ll be keeping a very close eye on the effects of the attorneys general settlement with servicers, as it could dramatically change the flow of REO properties moving through the foreclosure process [...]