February 10th, 2012 in CDPE by cdpe

Yesterday, the Justice Department and 49 out of 50 state Attorneys General announced a settlement agreement with 5 of the nation’s largest banks in the Robo-signing and Mortgage Service Fraud scandal that first came to light in late 2010.

The settlement, worth $25 billion dollars, was the largest government negotiated industry settlement since the Tobacco Industry settled in 1998.

In the Settlement, $5 billion is earmarked for $2000 payments to be distributed to borrowers who were illegally foreclosed on between January 1, 2008 and December 31, 2011. The remaining $20 billion will be used to help homeowners who are currently in danger of losing their homes by helping with loan modifications, principle reductions, refinancing, short sales, relocation assistance and other alternatives.

Our Comments:

Maybe we are missing something in the translation, but the bank took your house. There was no leniency at the time, no patience shown to help the homeowner out. And now all the banks are going to give for all the turmoil, frustration, confusion, disruption, laissez faire attitude, that these poor homeowners have been put through and all that can be done is give them $2000 back. 

Many of these homeowners are renting now and in many cases they have had to pay 2 or 3 security deposits just to rent a place to give your family a place to call home. In many of the cases, older folks have had to move in with family, move to another state where family can help out and for all this pain a measly $2000 to be paid to these poor homeowners! It's a shame! 

These homeowners have had to settle for a rental that has not been properly up kept and they have to leave homes where they had remodeled everything, made additions, updated bathrooms and all they can expect to receive is $2000. 

Something must be wrong with our addition because all the pain & sorrow these folks and their families have gone through, comes no where near $2000.