Tuesday, February 07, 2012

40 States Agree to Foreclosure Abuse Settlement With Banks To Reduce Loans For Homeowners Who Owe More Than Home is Worth, Banks to Send $2,000.

FOX NEWS.....WASHINGTON – More than 40 U.S. states have agreed to a nationwide settlement over foreclosure abuses. The deal would force the five largest mortgage lenders to reduce loans for about 1 million households. And the remaining holdouts could sign onto a deal in the coming days.

Officials say that negotiators worked well into Monday night to persuade more states to join the settlement. There is growing optimism that California, Delaware, Nevada, New York and others will eventually sign on.

The reduced loans would benefit homeowners who are behind on their payments and owe more than their homes are worth. The lenders -- Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial -- would also send checks for about $2,000 to hundreds of thousands of people who lost homes to foreclosure. MORE FROM THIS SOURCE

ABC NEWS...."Federal and state officials, as well as representatives from the banks, continue to address matters that they must complete before finalizing any settlement," said Iowa Attorney General Tom Miller, who is leading the 50-state talks.  Homeowners in states that opt out of the deal wouldn't share in the settlement money. The money available to homeowners could run as high as $25 billion if all states approve the deal.

The five lenders — Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial — have already agreed to the settlement. In settling the charges, the states would agree not to pursue further investigations against the banks in civil court. The deal would not protect the banks from criminal investigations.

Under the deal, the mortgage principal for about 1 million homeowners would be written down by an average of $20,000. An additional 750,000 Americans — about half the households eligible for aid under the deal — would receive about $2,000. MORE FROM THIS SOURCE

Bill Warner Sarasota Private Investigator, SEX, CRIME, CHEATERS & TERRORISM at www.wbipi.com