Foreclosure settlement checks hitting mailboxes
The first round of payments, totaling about $1.2 billion, will start getting sent out on Friday.
The settlement basically ended the government's investigation into illegal bank foreclosures, sweeping under the rug a mess so complex and so badly handled that regulators essentially threw up their hands in frustration.
The first round of checks, averaging about $125,000 each, will go to the people perhaps treated the worst by banks. They include nearly 1,100 service members foreclosed on illegally, The New York Times reports, and 53 other borrowers who were hit with foreclosures even though they had never missed a mortgage payment.
But the vast majority of affected borrowers will get only about $300 each -- hardly enough to make up for the damage done after banks refused to work with them on loan modifications or other strategies to prevent foreclosures. Slightly more than 568,000 borrowers fall under this umbrella.
In all, the first round of payments is expected to total about $1.2 billion, but borrowers are ultimately going to see $3.6 billion in cash. The checks are part of a $9.3 billion settlement regulators agreed to in order to put to bed a sprawling and ultimately fruitless review of foreclosure injustices.
The whole thing was a dud, and people shared their disgust Wednesday on Twitter about a process that ended so badly. The check amounts "are really sad for those who lost their homes in error," wrote one Twitter user. Another was cynical: "Faced with IDing homeowners harmed by lender misconduct, regulators shrugged and sent everybody $300."
We spent 2 1/2 years jumping threw the B of A hoops trying to get a loan modification. We must have submitted our paperwork 10 times yet the standard answer most of the time was "We didn't receive it" when we had the fax confirmation. Out of desperation and totally fed up we hired a firm to help with the modification. A huge $5,000 mistake but we were at our wits end with B of A. Nothing ever happened. We even connected with the President of Consumer Affairs office for B of A mortgage and were told if we made 6 months payments we would be granted a modification. HaHa. We borrowed from everywhere to make those 6 months payments and then were told by that office that we would need to reapply. That was it. We short saled the house and 3 weeks after it sold I was diagnosed with breast cancer. Of course we cannot prove that the stress of the 2 1/2 year battle was a contributing factor but we believe it to be. Both of us working full time and having to take so much time to put on the gloves with B of A sucked. We are in our 60's, not that age matters, it is a tragedy at any age.
It is a sad day when a settlement is reached and only because the government doesn't want to deal with it when they are the ones that created it in the first place with the ok of sub prime loans.
As taxpayers we actually pay these people to sweep problems under the rug. Are we angry, you damn betcha!
$300 Wont even pay for the time and paper work sent back to the banks over and over This Is what the taxpayer gets for bailing out Big Banks Screwed.
for up rooting my kids take my home dealing with insane landlords killing my credit . i now drive a 16 yr old car taxes are a joke a kid in college i was two months behind and trying to pay up bac kept
sending the checks back. why? so 300.00for my over 100,000 dollar home i guess we will go to dinner see a movie and buy groceries what a joke!!!!lol
Average home owner spent well over $300 in faxing documents over and over and over! to home preservation specialists. Home owners pulled out cash from their IRA' s, 401K's, family loans to come up with 3 months trial periods over and over and over!! each time, the paper work gets lost and a new person gets appointed to your a/c. Some of these so called "preservation specialists " hardly know what's going on because they themselves have never owned a home or raised a family in this country before (not to mention their limited communication and math skills) dealing with distress home owners. During this whole time. the attorney's were running a huge "taxi meter" with thousands and thousands of dollars, and the banks will continue to accrue interest well above prime rates adding it back to the loan. Thousands of hours on the phone, jacking up phone charges, and taking time off during and after work to call and call and call. to find out that person who worked with you is either on maternity leave or assigned to a different department, and no longer accessible.
I guess the same specialists who were assigned to help home owners would have come up with the $ 300 settlement offer, makes sense now.
$300 is an insult, to say the least.
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