Wednesday, April 10, 2013

Foreclosure Settlement

Subject to a wrongful foreclosure? Our former neighbors were and we miss them still.

The settlement reached between the banks and the regulators doesn't do much for those who lost their homes wrongfully:

Zibel, a. & Fitzpatrick, D. (2013, April 10) 'Scant Relief in Foreclosure Payouts: Most Borrowers to Get Less Than $1,000 as Part of a $9.3 Billion Settlement Between US and Banks.' The Wall Street Journal, p. C1.

[Excerpt] About 4 million borrowers will share $3.6 billion in cash as part of a settlement between federal regulators and banks accused of foreclosure-processing mistakes. U.S. regulators said Tuesday that banks wrongfully took away homes from 1,082 borrowers who were members of the U.S. military. Another 53 borrowers were found to have lost their homes despite not actually defaulting on their loans....[END]

Majia here: The article explains that most borrowers will see only between $300 and $1,000 dollars.

The probe investigating foreclosure wrongdoings was halted early 2013 when the regulators and banks reached a settlement because they claimed otherwise the probe would "drag out indefinitely."

What isn't clear to me is how people who lost homes by foreclosure were included (or not) in the review and settlement.

Another article from Think Progress examining the settlement for US service members reports that these individuals will receive much higher payouts. See the article here

I'm not confident this settlement will do much to improve the banking industry's ethics when the Federal Reserve Bank continues to bailout out their excesses with zero percent interest rates (i.e., 'free money').


  1. Majia's Blog: Foreclosure Fraud Endemic: Symptomatic of Rampant ...
    Feb 16, 2012 – [excerpted] "An audit by San Francisco county officials of about 400 recent foreclosures there determined that almost all involved either legal ...
  2. Majia's Blog: Foreclosures Transfer Wealth and Wreck Communities
    Feb 13, 2012 – [excerpted] "The $25 billion settlement with banks over foreclosure abuses may result in a wave of home seizures, inflicting short-term pain on ...
  3. Majia's Blog: Michael Hudson on Boiler Rooms and Foreclosure Mills
    Oct 9, 2010 – I just discovered there are 2 Michael Hudsons. How wonderful! It was like when my son ...
  4. Majia's Blog: Record Mortgage Delinquencies/Foreclosures
    Nov 19, 2009 – From Calculated Risk: "The MBA reports a record 14.4 ...
  5. Majia's Blog: Example of the Evolving Neofeudal Order: Rent ...
    Sep 17, 2012 – The article is titled "Boost for Foreclosure Market: Real-Estate Firm Gets Citigroup Loan To Buy ... Posted by Majia's Blog at 10:37 AM ...
  6. Majia's Blog: Chomsky: "Who Owns the World" and Some Empirical ...
    Oct 30, 2012 – Majia here: Here is an excerpt from an essay I wrote about ... many of which profited from rampant foreclosure fraud in the wake of the crisis.



    Here are some strategies for fighting back.

    I think that it is still relevant.

  2. I was going through an "old estimates" file that the admin girls had been calling on and annotating.

    These were people that were looking at investing in the future, looking at doing solar electric. So many of the notes said "no longer own the house, lost the house" really amazing.

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