Banks Reach Foreclosure Settlement

Banks Reach Foreclosure SettlementHomeowners who lost their homes to foreclosure may be eligible for up to $2,000 in this latest settlement. Five of the nation’s largest banks have reached a settlement with 49 states regarding shoddy foreclosure practices and robosigning dating back to 2008.

The settlement is aimed at helping two different groups: those homeowners who lost their homes and underwater homeowners who owe more on their homes than the property is worth.

Here’s how the settlement breaks down:

  • $17 billion to assist underwater homeowners
  • $3 billion to refinance mortgages for homeowners who are up to date on their payments
  • $5 billion to those who lost their homes in foreclosure
  • $1 billion from Bank of America will be paid to the Federal Housing Authority regarding fraud charges stemming from its subsidiary, Countrywide Financial

The banks have also agreed to revise their procedures and follow all legal guidelines when going through the foreclosure procedure.

Read the full story here.

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About reibrain

Hey, my name is Trevor and I'm the founder of The REI Brain and editor/contributor. I started investing in real es.tate when I was 21... and love entrepreneurship, the internet, and real estate. My main focus today is growing my companies, systemizing my businesses so I can work less and make more, and spend more time with my family. Learn more about me at trevormauch.com.

One Response to “Banks Reach Foreclosure Settlement”

  1. Alex February 20, 2012 at 2:55 pm #

    The about reibrain section of your posts seems outdated because it references 2008. Just my opinion though.

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