The mortgage mess that this country has suffered from for several years now, really still continues, largely because of government ineptness. Govern-ment bank regulators were going to review every loan file that resulted in a foreclosure in 2009 and 2010, and tailor relief for each particular (former) homeowner.
It was a fiasco. The government hired consultants to review the files, and they quickly ran up a $1 Billion tab for their fees, and it was taking forever. Finally, the federal people and the banks threw in the towel, and just made a settlement to get it over with.
On average, people that suffered a foreclosure during those two years will receive an estimated $868; a pittance for people that were wrongfully foreclosed.
But some people will get a windfall, perhaps as much as $125,000.00. One of the major complaints about the foreclosure settlement is that the money will be distributed without regard to whether a particular borrower suffered harm. Whether you had a legitimate claim against a bank or not, it just won’t make any difference.
The apparent truth (according to those involved in the settlement negotiations) is that it is so complicated and expensive to figure out who was at fault and what happened, that it is cheaper for them just to settle the case and pay some money to everyone to make it go away.
It’s too bad. It would have been nice to have an accounting, to know exactly what had gone wrong with each of those loans, and who was at fault. It’s just not going to happen, at least as a result of the “independent foreclosure review” process.
If you have a “toxic” mortgage loan or if you are facing a foreclosure, call our office and make an appointment for a complimentary consultation. We will review your situation at no charge and tell you if we can help.