$20k is a small price to pay imho for immunity… Lol, they really are going to try to blanket the RE problems
Yup, sweep the problems under the carpet, and give some homeowners a $20k mortgage relief. Sounds like a great plan!
Yeah, I’d say you folks still on the sideline waiting for 50% off on oceanfront property are in for a serious long ride down….At this rate, you folks will probably need to wait 30 years, be 65-70 years old, be wearing depend undergarments by then, and could care less where you live…
WASHINGTON (CNNMoney) — Some relief for more than a million beleaguered homeowners appears to be at hand, as New York and California will join just about all the other states in a $26 billion foreclosure settlement with the nation’s largest banks, according to a person familiar with negotiations.
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Under an earlier draft of the deal, some 1 million U.S. homeowners who are underwater on their mortgages could be eligible for as much as $20,000 in relief of principal owed, according to Secretary of Housing and Urban Development Shaun Donovan.
In return, mortgage servicers in states that agree to the deal would get immunity from future state servicing and originating claims — although homeowners could pursue claims against banks and states could still pursue criminal investigations.
And in all actuality, it’s the taxpayer paying for the principal reductions! Once again, the little guy getting shafted by govt and big banks…
“The mortgage principal write-downs are guaranteed to come almost entirely from securitized loans, which means from investors, which in turn means taxpayers via Fannie and Freddie, pension funds, insurers, and 401 (k)s,” writes Yves Smith at Naked Capitalism. “That $20 billion actually makes bank second liens sounder, so this deal is a stealth bailout that strengthens bank balance sheets at the expense of the broader public.” (See: Obama’s Refi Plan Is Another Bank Bailout, Stockman Says: “The Worst Kind of Crony Socialism”)
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