At long last, the Settlement Agreements have been filed with the Court as to the $25 Billion Settlement. The settlement imposes new rules on the five major lenders, Bank of America, Chase, Wells Fargo, Citi and Ally/GMAC. The settlement contains specific procedures that must be followed in loan modification and foreclosure situations. If you are interested in reviewing the documents click on National Mortgage Settlement and you can review them.
In the days ahead, we will be posting what we see as the key points of the settlements – from the standpoint of what we can do to improve the foreclosure, modification and short sale processes. Stay tuned. The battle has not been won – and the dollars are not as good as they should be or as big as the PR departments of our Government and the lenders claim. Nonetheless, the settlement does ad a new tool for Financial Crisis Management – and the key will be to know when it applies and how to make it work for those Americans who have sustained 40% drop in property values through no fault of their own.
Ken Gross is an attorney with Thav Gross and host of The Financial Crisis Talk Center, a radio program that airs weekly at 10:00 AM on Saturday mornings on Talk Radio 1270 WXYT AM in the Metro Detroit Market (streaming at www.cbsdetroit.com).