In California, there are still debates going on about how much and what is going to be in the new signing. There is a potential for increase into foreclosure help from $19 billion to $25 billion dollars.
"The settlement would require banks to provide billions of dollars in aid to homeowners who have lost their homes to foreclosure or who are still at risk, after years of failed attempts by the White House and other government officials to alter the behavior of the biggest banks."
How much help do you think this could do?
Robo-signing has an especially important impact when it comes to foreclosures. Basically a robo-signer is someone (usually a bank) that signs thousands of affidavits without truly verifying the information at hand. A big issue with this is that people say that they can afford the monthly payments on a house when really this just isn't the case.
This article states that 4million families have lost their homes due to foreclosures when really we can have no idea of how many houses were truly foreclosed on. The documentation was not properly done and therefore without true documentation there is no way for the government to keep track or even tell the true number. There are estimations that within the next year there will be another 2 million foreclosures.
To read the article here's the website: http://www.nytimes.com/2012/02/06/business/mortgage-relief-plan-is-closer-to-winning-support-of-2-key-states.html?_r=1&hp
I found it interesting that the article estimated that "The deal would also provide checks for about $2,000 to roughly 750,000 who lost homes to foreclosure." I suppose I'm a bit skeptical about the effectiveness of of this plan given the amount of money that homeowners are expected to receive. In many cases, mortgages were 100% financed. $2000 is not going to keep these mortgages afloat. I think this deal will be met with mixed results as $2000 may be just enough to keep some families in their homes while others will again be upside on their mortgages in a few months.
ReplyDeleteI agree with Ryan; this plan seems unpromising. I think the government needs to change its technique in solving this mortgage mess. None of the past plans have reached their goals.
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