There has been a recent settlement for $8.5 billion between 10 banks and Federal regulators. The settlement relates to fraudulent practices the banks were involved in regarding the foreclosure crisis that exists in the United States.
Holding Banks Accountable
Banks, to maximize their profitability, use many shortcuts. Robosigners, who knew nothing about the documents they were signing, signed hundreds of foreclosure authorizations.
Of the $8.5 billion the banks are coughing up, $3.3 billion will go towards people’s homes who are being foreclosed on. This will amount to approximately $1,100 for each foreclosed home. Individuals who were improperly denied mortgage modifications could receive as much as $50,000.
Who Will Receive These Funds
Who will receive these funds is the big question. There is no procedure for indemnifying the individuals and families who were damaged when they lost their homes. The families whose lives have been ruined may never receive any portion of this settlement.
So what does this settlement really accomplish for the Obama administration? A public relations gesture to try and convince the public he is actually doing something to deal with the crisis. The reality is the individuals who made millions of dollars scamming homeowners are keeping their illegal gains and suffer no prosecution.
Foreclosure Defense Lawyers
The Law Offices of Schlissel DeCorpo is one of the largest foreclosure defense firms on the East Coast of the United States representing individuals concerning fraudulent mortgages, mortgage modifications and helping keep families in their homes.
