Real Estate Supergirl

$26 billion settlement.. Will YOU get the money?

The biggest settlement yet to address the housing meltdown was just established with 5 largest lenders: Bank of America, Chase, Wells Fargo, Ally Financial and Citigroup. The deal settles potential state charges about allegations of improper foreclosures based on robo signing, seizures made without proper paperwork.

The settlement includes the Justice Department and the U.S. Department of Housing and Urban Development, as well as 49 state attorneys general — all except Oklahoma.

As U.S. Attorney General Eric Holder said: ”We are using this opportunity to fix a broken system.”

“No action, no matter how meaningful, is going to by itself entirely heal the housing market,”  said President Obama. “But this settlement is a start.”

Most of the relief will go to those are owe much more than their homes are currently worth. The banks have the incentives to provide most of it in the next 12 months, but they have 3 years to complete the process.

What does this settlement mean to you as a homeowner?.

1. $17 billion will go to reduce the principal of the homeowners that are both “under water” and behind on their payments; The goal is to reduce the principal of $1 million people.

2. $3 billion will go to refinancing for homeowners that are on time with their payments. Their principal wouldn’tbe reduced, but at least they could refinance at the lowest interest rates, saving them money on the monthly payments. The goal is to help $750,000 homeowners

3. $1.5 billion will go to people who has been foreclosed on in the last three years, they should receive up to $2000 each.

“Federal officials say negotiations are underway to expand the settlement to nine other major servicers, which would raise the overall value of the settlement to $30 billion” per CNN.

This is all great, but it still will help only a fraction of the struggling homeowners..

According to the Mortgage Banking Association, there are 1.5 million, that are currently delinquent on their payment 90 days, plus 1.9 million are in the foreclosure process, and scary 11 million are what we call, “under water”…

I believe it’s a great step for them to at last give some specific help to homeowners in the form of the exact money savings, but there is still so much to do… What are your thoughts?..

Sincerely,
Khrystyna Chorna
Real Estate Supergirl

http://www.youtube.com/chornarealestate

This entry was posted on Saturday, February 11th, 2012 at 5:37 pm and is filed under Real Estate Supergirl Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. Suzan Valdez said at February 11th, 2012 at 11:59 pm

   Khrystyna; Do you have any idea whether this applies to those who’ve been through a Short Sale?

2. resupergirl said at February 12th, 2012 at 12:04 pm

   Hi, Suzan, no unfortunately it does not.., unless something changes and they come up with a new program. I’ll keep you updated!

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