Tag Archives: foreclosure

U.S. Justice Department $25Billion, 50-State Mortgage Settlement With Nation’s 5 Largest Banks To Resolve Faulty Foreclosures & Wrongful Mortgage Practices: Finally Struggling Homeowner Relief? Or Another Bailout For Big Banks (T.A.R.P. REVISITED)?

Billed as $25 billion-plus deal, in fact $10 billion is actually from investors.. And then, they’ve got another $7 billion, which is other forms of relief. Some of that’s a bit dubious, too. For example, they’ve got $3 billion of that in forgiveness. If somebody’s been foreclosed upon, but the value of the house doesn’t cover the amount of the debt, that’s what they call a deficiency judgment. That means that, in theory, the bank could still pursue you for the money that they didn’t recover. In practice, banks hardly ever do that. So they’re basically going to get credit, you know, for people they weren’t probably going to go after anyhow. Continue reading

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