Friday, March 4, 2011

Government, banks wrestle over settlements in botched foreclosures - Sacramento Business, Housing Market News | Sacramento Bee

MY RANT: Finally the politicians are started to see that homeowners ALREADY foreclosed and affected should be included in settlements to states for FRAUD. WELL DUH,  they were the ones harmed. It should go to ALL of those, many who have tried to get help early on when none was available. Even 1 year ago many lawyers could not help - this last year there is more info out there - but corruption does make it hard to get legal enforcement of laws. Those harmed SHOULD get assistance. I do not feel sorry for banks that could have dealt with this years ago as things started and people stood up adn said you can't do it this way - follow the law! Heck I say follow the contract!

I know of people that are rotating from friend to friend, another whose family had to split up for a month or two while reorganizing, another who lost job due to moving after eviction, and others whose whole lifestyle has been upended (and it was a simple country lifestyle). Do you think they deserve a little back of what they lost?  Read some posts about what happens in forcible detainer or eviction hearing (use the search tool up top).   Tell me, why do people that have no skin in the game, who have not stood up to the banks, spent money  on legal, spent time submitting fraud reports to government - well why should those that have not suffered be given any award? Lets put it this way... In court there are hundreds of cases in a day of evictions and only a handful of people show up to defend the action.. Most give up without a fight.

Also since when does Government wrestle with Fraud.... start enforcing the law and  take to court for restitution for those harmed. Does anyone realize that the bank would owe 3x the damages they caused with fraud???  This is just the foreclosure fraud - not the mortgage fruad,  inducement to toxic loan or anything else JUST the foreclosure part of it. WOW...

Government, banks wrestle over settlements in botched foreclosures - Sacramento Business, Housing Market News | Sacramento Bee: "WASHINGTON -- Federal and state officials are analyzing proposals that could help people who lost their homes or missed mortgage payments as a key part in resolving a multibillion-dollar case over botched foreclosure paperwork.

Government negotiators are wrestling with banks and their mortgaging servicing arms over the amount of the settlement - from $5 billion to $20 billion - and then must decide how best to use the money.

'We are getting close to a critical phase of negotiations,' said Geoff Greenwood, spokesman for Iowa Attorney General Tom Miller, who is leading attorneys general from all 50 states in investigating mortgage foreclosure problems. 'We've finalized nothing, and we're still working on some very complicated issues.'

One of the most delicate issues is determining how to aid homeowners without further damaging the housing market.
Should the money, for instance, go only to people whose mortgages were directly affected by faulty robo-signed documents - those signed without being reviewed by anyone - or should it should be spread broadly to all troubled homeowners in recognition of the harm caused to the entire housing market?"

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