Mortgage deal could bring billions in relief

CNNMoneyFebruary 9, 2012: 11:25 AM ET

WASHINGTON (CNNMoney) -- In the largest deal to date aimed at addressing the housing meltdown, federal and state officials on Thursday announced a $26 billion foreclosure settlement with five of the largest home lenders.

The deal settles potential state charges about allegations of improper foreclosures based on robo-signing, seizures made without proper paperwork.

The settlement includes the Justice Department and the U.S. Department of Housing and Urban Development, as well as 49 state attorneys general -- all but Oklahoma.

Well it looks like some for some people is on the way !!

It seems homeowners who are "under water" and ar behind on payments might actually receive a reduced payment and even a reduced principal amount !!

A large amount is quoted, but what that comes down to for an individual remains to be seen.


CNN story and Video starring Eric Holder:
Mortgage Scam Settlement


What Will This Accomplish ?



Related Thread with some things to consider: www.abovetopsecret.com...

I just wonder how they're gonna treat people who DID struggle, and who DID sacrifice in order to keep their payments up.

Or how about people like me, I bought completely within my budget, and now it's paid for. (didn't say it was much..)

They are or will be using tax dollars for this. Oh NVM, it's money from China, right?

ETA; I want to also say that I am not unhappy, Hell I'm glad somebody, anybody, can get some money back, too bad it's the banks.

reply to post by xuenchen


ok... So..


They take care of the people that hasnt lost their butts yet.. So much for the thousands who already lost their butts.. What about them? Why is this only for those that are STILL in their homes and not included for the ones that's already LOST their homes??


I dont get this...

Its a very tricky thing. I will post my opinion on the matter.

For those that did actually get a loan that they either knew they couldn't afford or that they misjudged the math and of course the bankers helped them into the mess- They should not get help.

For those that hardship caused them to have issues, I think they should get help, readjust the terms. Don't necessarily strike away the principle, maybe restructure the loans with their remaining principle and a lower interest rate, or help them with selling if the hardship took away a bread winner indefinitely.

Take my Aunt for example. She took a loan out that she new she couldn't afford. She is in foreclosure status.

I think she should not get any help. She is an embittered Obama supporter (well actually Democrat supporter, but whoever the party tells her to support at the time), she thought for a long time that Obama was going to pay her mortgage. She was declined several times, I wonder if the people laughed at her when she mentioned she voted "the right way" as she puts it. Because we all know that politicians take care of us.

Now I do think she is delusional and needs help, but not that kind.

And as I mentioned, those that had hardships should get help, either to get out of (not loose responsibility) or restructure the loan.

Originally posted by rbnhd76
I just wonder how they're gonna treat people who DID struggle, and who DID sacrifice in order to keep their payments up.

Or how about people like me, I bought completely within my budget, and now it's paid for. (didn't say it was much..)

They are or will be using tax dollars for this. Oh NVM, it's money from China, right?

They will slap you on the back,

and say "good job", you are a good citizen.

Keep up the good work !

Anything else, take a number and have a seat in the corner over there.

What did we expect from government.

What's funny about this is the banks are paying around 25 Billion in exchange for immunity from prosecution for their immoral lending practices. Why didn't we give any of the 8.4 trillion dollars that we lent to these idiots to the home owners who actually needed it? Furthermore, why didn't our government buy out these banks after the initial crisis?

There is nothing good about this; we're basically exchanging $8.4 trillion+ for $25 billion, and the media is playing it up like this saintly act by the awesome, philanthropic banks who only ever wanted to help the American people.

Disgusted.

ETA: The money will probably be printed at the FED and given to the banks. Lol.

Originally posted by theRhenn
reply to post by xuenchen

 

ok... So..


They take care of the people that hasnt lost their butts yet.. So much for the thousands who already lost their butts.. What about them? Why is this only for those that are STILL in their homes and not included for the ones that's already LOST their homes??


I dont get this...

edit on 9-2-2012 by theRhenn because: (no reason given)

Good Point.

Take a look at the related thread in the OP.

The article linked has some answers.

Always remember too....

Some of the most highly educated people in the country make these things happen

Another issue here is people who were lucky enough NOT to lose a job are the ones who may get something from this new deal.

The unLucky ones have probably already lost out on any chances here.

I don't know what the intended outcomes are by the politicians.

reply to post by DestroyDestroyDestroy


Gee.

That might just be the whole intention of this "deal"

Good observation !

The banks look like they may be buying immunity.

Bad - bad - bad for homeowners - great for banks.

How in the world did this happen?

First, this won't help homeowners.

1. The banks ALREADY have incentives for modifications and they won't do them. They lie to homeowners during the process. Nothing will change. They will still say the lost paperwork.

2. The amount of money isn't enough for most people. The vast majority have lost way over $17,000.

3. Instead of oversight but a few bankers in jail for fraud. The next person in charge will follow the law.

Still this will not effect most people. We bought our home through a bank that is NOT a big 5.
We bought in 2008, but did not qualify for the money that year because we bought in Feb, and you had to buy in March or later.

The next break was for fanny and freddie loans. We did not have that. This one is for people, who bought through the big 5 banks ( not rite either, they are making the banks pay these people, the same government who made them loan to people) .

There is a also a program where you can have your interest payment lowered, but guess what, we do NOT qualify because we bought a house WE COULD afford. So they are helping those that overbought.

I am really getting tired of paying tax dollars to those who did not do it rite, while those of us who did get screwed.
I paid 100k for a house that would not even sell for 30 k here rite now. Did we walk? No , we are still here.
Never got one bit of help either. In fact I do not know a single person than qualified for anything around here,

Guess we should have a bought a house twice what we paid, because we could not afford it, but we would have got all kinds of help and now have that house where we can afford it, thanks to all the taxpayers in America. Yeah. Don't think so.

reply to post by xuenchen

I just heard this being broken down. FHA gets several Billion, the home owners will get $2000 paid out over three years. Yeah, that ought to make them all feel better.

reply to post by xuenchen


In My Opinion this is another bankster plot to get more money.The A.R.M Loans is what put the mortgage market into decline back in 2003 thru 2008. They refinance your home and you pay a low cost monthly mortgage which is only the interest then after 5 years the home owner will owe the balance, its called a balloon payment. In the five years the homeowner is suppose to either save the balance or refinance again. Its a loose loose situation and it makes me mad in 2 ways, first the people who fell prey to the first round will go another round, in the second round it will be their faults, second the banksters know what they are doing and when all the refi`s are not repayable they will look at the government and federal reserve for the bail outs. It is wrong.

AND,

Not to mention how much this "settlement" deal cost the taxpayers.

The Feds, the States -- all had their experts involved in this -- and not for free either.

All have paid big $$ for all the intellectual, legal and educated expenses just to get this to todays point.

It must be hundreds of million$ the majority of citizens have to pay for all this.

We've Been Rooked Again !!

I Say NO ..... and Let's Get a refund !!

Hidden fees in your new finance agreement I'll pass. The red tape, the below market value appraisals no thanks.

This does nothing for those who have jobs and make their payments on time each month. Even though I'd be underwater if I tried to sell my house today. I refinanced a couple of years ago and got whacked on my appraisal by an idiot appraiser who operates 1 hour from where I live. I had to pay the difference between the appraisal and my refinanced mortgage amount.

Its all a joke. I think the govt. wants to own all of our homes so that we all just become renters and federal dependents. OOOF! Just another scam.

There could be a bigger agenda also.

The U.N. has been writing crazy ideas.

Private ownership of land is not compatible with socialism, communism, or with global governance as described by the United Nations. Stalin, Hitler, Castro, Mao - all took steps to forcefully nationalize the land as an essential first step toward controlling their citizens. The UN, without the use of military force, is attempting to achieve the same result.

The land policy of the United Nations was first officially articulated at the United Nations Conference on Human Settlements (Habitat I), held in Vancouver, May 31 - June 11, 1976. Agenda Item 10 of the Conference Report sets forth the UN's official policy on land. The Preamble says:

"Land...cannot be treated as an ordinary asset, controlled by individuals and subject to the pressures and inefficiencies of the market. Private land ownership is also a principal instrument of accumulation and concentration of wealth and therefore contributes to social injustice; if unchecked, it may become a major obstacle in the planning and implementation of development schemes. The provision of decent dwellings and healthy conditions for the people can only be achieved if land is used in the interests of society as a whole. Public control of land use is therefore indispensable...."

The UN and property rights


Related:

US House Puts Oceans, Coasts Under UN: Senate Vote will Seal the Deal

Yeah, the LAST time we a mortgage relief plan I received a WHOLE $83 per month break...

needless to say that with four kids and medical bills and inflation I gave up on my house after 4 more months... and they have another house that will sit unsold for years. And I'm not sorry one little bit that I made that decision

They are now stuck with all the repairs (including a new roof), and the insurance, and the taxes. I think it's gonna cost the ALOT more than $83 per month

I tried to get help too. We didn't overbuy but both lost our jobs. I couldn't get help because I didn't fall behind fast enough for one program and too fast for another. We used all our savings and retirment to make the payments for as long as it lasted.

Trying to get a modification now but I know the problems and my lender is not one of the banks either.

What I'm wondering is are these banks getting money on loans that they sold off in the packages? That won't help any homeowners because the new owner of the loan really won't give a rat's behind.

This makes me angry, to be quite honest. Its all about rewarding people for making poor financial choices, and punishing those who actually lived within their means, did their research, and make wise choices.

reply to post by xuenchen


I did hear last night on the radio news that there was far too little money to go around. Only a small portion of the effected will even be helped. That leaves majority of the people in the hole, still in the hole.

This topic makes my blood boil. 5 minutes alone... Just give us!