If banks cannot come to an agreement with at least two Attorneys General (Illinois and North Carolina) regarding their role in the foreclosure crisis, a lawsuit will be forthcoming. A multi-billion dollar fine and a principal reduction or writedown plan for current homeowners has been discussed by the federal government, including the U.S. Justice Department, and state governments vs five major banks, JPMorgan Chase, Bank of America Corp., Ally Financial, Citibank and Wells Fargo. The fifty-state effort began last year due to faulty foreclosure practices. Prior to settlement talks taking place, these states were originally prepared to take these banks to court.
Florida’s Attorney General, along with several others, do not think a settlement would be beneficial in the long run. They believe it could be detrimental to the housing market and discourage banks from further lending in order to help themdefray the costs associated with making the proposal happen.
Negotiations are progressing, but due to the tremendous pressure on the banks to make themselves accountable, they would most likely agree to settle in order to avoid being exposed to expensive lawsuits from homeowner advocate groups, class-action groups, and the states themselves.
This settlement would not only punish these banks , but improve future home buyers’ chances of having proper documentation when applying for mortgages.
We at Amerihope Alliance Legal Services, are committed to staying abreast of the laws in order to best navigate through this maze. As each homeowner’s situation is unique and made more complex due to lenders’ guidelines and investors’ approval, legal representation is crucial in order to maximize your results. Please call us for a complimentary consultation. Let’s see how we can work together to rectify your situation and keep you in your home.