Banks Agree to $8.5B Settlement Over Foreclosure Errors

Banks Agree to $8.5B Settlement Over Foreclosure Errors

 

Banks Agree to $8.5B Settlement Over Foreclosure Errors

 

Ten major banks have agreed to pay more than $8.5 billion in a settlement with federal regulators over lenders’ past mistakes in processing foreclosures.

About $3.3 billion of the settlement is to help 3.8 million eligible home owners who were foreclosed upon in 2009 and 2010. About $5.2 billion of the settlement will then be provided in assistance to home owners struggling financially, such as through mortgage modifications. Eligible borrowers will be contacted by the end of March. 

Banks have been accused of filing faulty paperwork, foreclosing on mortgages they didn’t own, failing to provide proper notice of default, and foreclosing while a borrower was under a loan modification plan. 

Originally, the banks had agreed to conduct an Independent Foreclosure Review program, which allowed eligible home owners who were foreclosed upon to have their cases reviewed for possible compensation. But the program has only attracted a small portion of eligible home owners who’ve taken advantage of the free reviews. The latest settlement would end those case-by-case reviews of foreclosures by the 10 banks. 

The settlement is separate from a $25 billion mortgage settlement last year between five of the nation’s largest banks and attorneys general from 49 states. 

The 10 mortgage companies involved in the latest settlement include: 

  • Aurora
  • Bank of America
  • Citibank
  • JPMorgan Chase
  • MetLife Bank
  • PNC
  • Sovereign
  • SunTrust
  • U.S. Bank
  • Wells Fargo

Source: “Major Banks Reach $8.5 Billion Mortgage Settlement,” Atlantic Journal Constitution (Jan. 7, 2012)

Read More

Banks Near $10B Settlement Over Foreclosure Abuses

 

Contact Information

Photo of Cindy Gardner Real Estate
Cindy Gardner
Century 21 New Millennium
2448 Holly Avenue
Annapolis MD 21401
410-703-9202
Fax: 443-458-0174

Now merged with Century 21 New Millennium with Listing Agents in Virginia and Washington, DC to handle your Short Sales.  Also facilitating Short Sales in Anne Arundel County, Prince Georges County, Howard County, Montgomery County, Baltimore County, Baltimore City, Calvert County, Charles County, Carrol County, Frederick County, Talbot County and Queen Anne’s County, Maryland

Maryland Short Sales

Virginia Short Sales

Washington, DC Short Sales

Short Sale Expert

Cindy Gardner
Century 21 New Millennium
2448 Holly Avenue
Annapolis, MD 21401
 Phone: 410.703.9202
  Fax: 443.458.0174
Cindy.Gardner@C21NM.com