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Is this the silver bullet to the Foreclosure Fiasco?

Don't holder your breath is what I say. Eric Holder and the Justice Department and the U.S. Department of Housing and Urban Development, just announced a settlement between major banks that hold loans in 49 states. This statement might make you laugh or cry; "The settlement sets up a federal monitor to oversee the process and try to prevent roadblocks and red tape that tripped many homeowners seeking help in earlier mortgage relief programs." Since when did the creation of any federal "guru" or "Czar" appointed by any administration in Washington EVER reduce the red tape? The agreement calls for "principal reduction for as many as 1 million people." Oh so what about the other 400+ million people in the country? Should we all just rush on down to our local bank and demand a principle reduction? Sounds like a very slippery slope to me. Oh sorry you have a job. You don't qualify. There they go again... another case of Washington insiders picking the winners and losers. Well maybe if I slack off a little I can get fired from my job and then I can qualify for this great new government program. Then I will finally be able to pay my mortgage. I say this in hyperbole to exaggerate the consequences of this kind of lunacy. You thought there were headaches and confusion at the banks before. Just wait... for more promises..promises.. promises. We are going to hear a lot of them this election year.
  • February 10 2012 - Grass Valley
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Answers (10)

Profile picture for sunnyview
"Anytime I read the word "settlement" between big banks and government it makes me worry that something fishy is going on. Follow the money."

Follow the money is right. California has been hit hard, I know they will recover, but it would be nice to feel like the settlement was more than a buy off and would help real people.
  • February 13 2012
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Profile picture for the_country_hick
"announces that California received more than $12billion of the $25billion settlement"

That seems wrong for only one state to receive about 1/2 of such a large settlement. I wonder if that has anything to do with electoral votes.
  • February 13 2012
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New data in from the State Attorney Kamala D. Harris, announces that California received more than $12billion of the $25billion settlement from major US banks & 49 States involved. The money to be used to offer short sales or write down loans over the next three years for about 250,000 underwater homeowners in California, according to the attorney general. What's not mentioned is that this could be in appeals court for the next 3 years and beyond providing little if any relief. Again here is our government picking the winners and the losers of our State's 37,253,956 population.

Again that's 250,000 out of 37,253,956 people in the State. Oh wait ya.. there's a 37 in front of that 250,000? What about them?

Score another win against the big banks. Hey I'm all for giving credit where credit is due. But if this relatively small win affects liquidity for banks or higher interest rates, and a tighter money supply for the rest of the 37,003,956 people in the state who already can't get loans. Then this was not such a great deal for the rest of us in a struggling economy that relies on credit to keep the wheels turning and the lights turned on.
  • February 13 2012
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Yes, it does seem a bit like a "Robinhood" scheme, as The government handed over billions of tax-payer dollars to those mega-banks, and the settlement is such as small percentage of what the banks took from the tax payers, but they are only going to give out maybe $2k to people that couldn't afford their mortgage?
  • February 11 2012
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Anytime I read the word "settlement" between big banks and government it makes me worry that something fishy is going on. Follow the money.
  • February 11 2012
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The best part is those 5 mega-banks can take up to 3 years before they do anything about any issues according to their "settlement" agreement, and the robo-signing issue is now off the table.  Sure, they can still be sued for mistaken foreclosures, etc... but they would have been anyway, and there are so few of those, it won't make any difference.

Funny thing is, in addition to the Attorney General's of the states, it was HUD that was seeking this "settlement" with the mega-banks, when HUD was the one that mandated those mega-banks issue those liar loans in the first place.
  • February 10 2012
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Profile picture for Caveat Emptor
yeah, the settlement is BS. oh, whoops, we illegally foreclosed on your home, darn... heres 2,000 bucks. that should almost make up for the realtor fees you paid. well, actually no. almost is a little strong. it will "almost kindof come close to paying off a little less than half of your realtor fees... under certain circumstances."

yes, thats better.

multiply that number by 10 maybe.

and why is obama still paying for this? tell the banks that they need to mark-to-market all mortgage related paper. period.

then you'll see the mods really roll.
  • February 10 2012
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Profile picture for Dunes ..
"Zillow says they are working on it, but so far nada"

Wow..... that's really unusual
  • February 10 2012
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Profile picture for sunnyview
Thumbs are broken. :( Zillow says they are working on it, but so far nada thumbo.
  • February 10 2012
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ok, why isn't the thumbs up button working? Anyone?
  • February 10 2012
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