The $20 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.
I hope this resolution will help more struggling homeowners stay in their homes, and 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.
teamDoral is a RE/MAX Premier Associates Group. Richard Recuset is a Realtor®,team leader, Short Sale Agent, Listing Marketing Specialist,Certified Distressed Property Expert (CDPE), and Accredited Commercial Practitioner (ACP), serving the City of Doral, Fl and surrounding areas.
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*Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice and is for information purposes only.