Real Estate Supergirlhome
Specializing in Downtown San Diego Condos.
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.
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.
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.
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”…
Real Estate Supergirl