Will the $26 billion dollar settlement help homeowners? The short answer -Probably Not.
I have had numerous clients ask me about the highly touted settlement involving the attorney generals and the major banks. Understandably, $26 billion sounds like it could potentially help a lot of people who want to stay in their home. However, a recent article on CNN shows that the reality is that many people will not qualify for any assistance through this settlement. Interestingly enough, the Obama administration says the settlement was not intended to solve or resolve all the issues related to the housing crisis but is one of the tools used to help homeowners who are having difficulty staying in their home.
My general feeling about the settlement is that it will fail to help most homeowners, especially those in California where home values and mortgages are much higher. In an effort to make the settlement more appealing, many of the banks, including Bank of America, claimed that the settlement would result in large principal reductions. While this is an appealing proposal, many homeowners are finding that their loans are not eligible for this sort of reduction because they have been transferred between lenders or are not part of the settlement. This is a rude awakening for some homeowners who have had foreclosures delayed pending this settlement.
For some homeowners, foreclosure litigation is a reasonable alternative to waiting for a bank to voluntarily save your home. In litigation, our firm can sue the bank on your behalf and try to force a modification or settlement. Of course, De Novo Law Firm can also help you obtain a loan modification as an alternative to foreclosure. De Novo Law Firm has successfully obtained loan modifications with bank of america, principal reduction with Chase, and loan modifications with numerous other lenders. For a free consultation, call (951) 801-5570.