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Record $25 Billion Foreclosure Abuse Settlement Reached
By Matt O’Donnell
The Department of Justice will hold a press conference today to announce the settlement agreement, which will provide certain relief to homeowners who went into foreclosure between January 1, 2008 and December 31, 2011.
The foreclosure abuse settlement is the result of a year-long campaign led by President Obama to reach a mortgage relief plan with the five biggest mortgage servicers, Bank of America, JPMorgan Chase, Wells Fargo and Ally Financial, to settle an investigation of foreclosure abuses. Evidence of abuse, most notably robo-signing of foreclosure documents, began to show in 2010 during a record national wave of foreclosed homes.
The terms of the foreclosure abuse settlement haven’t been made public yet, but earlier versions of the deal would give about 1 million U.S. homeowners who are underwater on their mortgages as much as $20,000 in principal owed, and give those who already foreclosed several thousand dollars. The deal would not apply to loans sold to Fannie Mae and Freddie Mac.
Homeowners who participate in the foreclosure abuse settlement would still have the right to sue the banks, according to Iowa assistant attorney Patrick Madigan, the New York Times reported. That means we may see a massive class action lawsuit against the banks in the near future.
At least 42 states have agreed to sign the foreclosure abuse agreement. New York and California were among the last states holding out, with their state attorneys general previously saying the settlement terms were not adequate. It was not clear if they will join or sue separately.
California’s attorney general Kamala Harris said she wants stronger measures to benefit individual homeowners, echoing homeowner advocates who had criticized the deal, saying it would provide little relief to the most troubled homeowners.
Top Class Actions will continue to report on the bank foreclosure abuse settlement deal as more details emerge.
Updated June 12th, 2013
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19 thoughts onRecord $25 Billion Foreclosure Abuse Settlement Reached
Please add me to this lawsuit.
I was foreclosed on in march of 2012. Is it too late to get in on the lawsuit????
I was foreclosed on my house in December 2009 after a short sale buyer was approved and the paperwork for the short sale was signed, sealed, and delivered to the United Bank of Union by 10:30 (per the request of the bank) which the bank stated the deal needed to be on their desk by noon the day the paperwork was delivered to the bank. The attorneys of the bank decided to deny my short sale, took my house to auction, the lawyers of the bank bought my house back from the auction, took my buyer, and sent me a bill for 17,000 which was supposedly the balance of what I owed and what they sold my house to the buyer. I put down approximately $35k and lost it all. I was forced to file bankruptcy because of the unethical business practices by the privately owned bank (United Bank of Union in Union, MO). Do I qualify for any money back from the class action lawsuit?
Thank You and I look forward to your response.
Michele
Is it to late I was also forclosed on by Americas servicing-Wells Fargo in 2008
How do I become a part of this? I was foreclosed in 2008 by America’s Servicing Company a part of Wells Fargo.
Have you received any information on how to get help?
Bank Of America has single handedly put me and my family in a never ending bind , we aren’t in any of the law suits and they still refuse to show wayne county a discharge of my mortgage nor have they showed that my mortgage was bought from first franklin loans by them, and First Franklin is still listed, this has been the hardest 3years of our life, not including, when we left the house in 2010, due to them starting foreclosure proceedings. Squatters have stayed there and had electricity on illegal and now they say its ours, with the utility company stating this large squatter bill as ours, when the house had been vacant 2 yrs and i gave a police report, but everything falls on deaf ears in this entire situation. We never thought in a million years they would say our loan was forgiven and to keep tax payments current. We sit here now we a house we don’t want nor the bank but i believe in the future they will take this house from us with nothing on file , stating they took the loan, we need to compensated and someone needs to answer to this mess immediately, it has destroyed the whole fiber of our family and security. WE NEED HELP AND NO ATTY REALESTATE OR OTHERWISE WILL HELP, WE ARE ONE OF THE FAMILIES THEY HAVE SHUT OUT!