Mortgage Settlement Report Finds Banks Reluctant To Reduce Principal, Despite Promises The largest mortgage settlement in U.S. history was pitched by its creators as a deal that would offer quick aid to 1 million people in danger of losing their homes to foreclosure. But according to a report released (in February, 2013) by the court-appointed monitor of the settlement, in the first nine months after the $25 billion deal was struck, fewer than 50,000 people received the most coveted form of relief: reduction of principal owed on a first mortgage. See full story: huffingtonpost/2013/02/21/mortgage-settlement-report_n_2736093.html This story is consistent with a more recent article in the Tampa Bay Times (August 23, 2013) wherein it states that the nationwide settlement absolving big banks of foreclosure abuse led to more than $9 billion in Florida relief, but most of that money did not go toward keeping people in their homes, a final report released back in August states. In a nutshell, most of the money was “credited” (as I predicted and recognized shortly after the settlement) towards those loans that were uncollectible anyway such as home equity lines of credit (“HELOC”) loans or on short sales where collection for deficiencies were unlikely anyway (i.e. borrowers that don’t have assets or already filed for bankruptcy). It truly is disappointing that the lenders are not stepping up like we all hoped that they would.
Posted on: Thu, 26 Sep 2013 20:55:30 +0000
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