The five major mortgage lending banks, Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial have proposed a deal to U.S. state officials that could re-shape the structure of mortgage lending and better protect homeowners from foreclosure malpractice.
Since the housing market crash of 2007, almost eight million American homes have been foreclosed on. A reportedly 11 million homeowners in America owe more than half of what their home is currently worth. Under the proposed deal, those who are eligible will receive a check for approximately $1,800, but it is doubtful they will get their homes back. The purpose of the reserve accounts will be to help those who have been victims of deceptive foreclosure practices.
Under the proposed $25 Billion deal:
• $17 billion would go toward reducing the principal that struggling homeowners owe on their mortgages.
• $5 billion would be placed in a reserve account for various state and federal programs; a portion of that money would cover the $1,800 checks sent to those homeowners affected by the deceptive practices.
• $3 billion would be to help homeowners refinance at 5.25 percent.
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Choosing the right attorney can make the difference between whether or not you can keep your home. A well qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
