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Robo-Signing Settlement Announced: Not Without Controversy
On February 9th 2012, the United States Justice Department released the details of the $25 billion dollar settlement they reached with 5 major banks. "The Settlement occurred because the banks were accused of widespread use of "robo-signing".
Laura Lake, A Certified Distressed Property Expert (CDPE), believes that the settlement presents a unique opportunity for homeowners who are in danger of losing their home.
"The reality is, the banks would rather explore other options than foreclosure and this settlement gives them both the motivation as well as the funding to explore them".
"But those homeowners who are hoping to get help and stay in their home, may be in for a bit of a surprise."
Although this settlement is the largest government industry settlement since the $250 billion Big Tobacco settlement 1998, there has been opposition on the grounds that the settlement does not go far enough to alleviate the $750 billion in negative equity in the country......WHY?
There has been massive amount of media about the part of the settlement where these banks will be reducing principal balances to current market value, but the reality is, only a small portion of homeowners will get this type of help.
The reason? The settlement only applies to loans these 5 major banks own themselves and a few of their investors who participated in the robo-signing. During the bubble, crash, whatever you want to call it...the banks sold a good portion of the notes to Fannie Mae and Freddie Mac...and guess what....they are not part of the settlement, nor are the loans by investors who are not part of the settlement...and wouldn't you know it...these are the majority of the loans currently in default
Should you stay or sell your home. Find out At www.StayOrSellMyHome.com and get a detailed report showing your home's current "market value" and find out how long you need to stay in your home to "break even" again.
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About The Laura Lake Group - The Laura Lake Group of Keller Williams Realty - La Quinta CA is led by mega agent Laura Lake, a Certified Short Sale Expert (CDPE) and Certified HAFA Specialist. We offer a full range of services from equity sales to short and bank owned properties. Serving all of Palm Springs area, including La Quinta, Indio, Rancho Mirage, Bermuda Dunes, Palm Desert and Indian Wells.