After months of fact finding and research the second largest consumer settlement has made history. The Robo-Signing Settlement between the Government and the five major lenders has finally come to an agreement. For distressed homeowners this important foreclosure news could be the answer to the biggest question asked today: does this mean I can stay in my home?
During the peak of the foreclosure crisis, mortgage companies across the U.S. were hit with a glut of delinquent properties they were just not equipped to handle. The Government alleges that during this time, some of the banks may have processed foreclosures without following the proper procedures, thus foreclosing on homes that under different circumstances might not have been. If you didnâ€™t hear it on the evening news, the term â€œrobo-signingâ€ was used to describe the practices of the banks while handling thousands of foreclosure transactions.
The five major banks involved in the settlement are: Bank of America, JP Morgan Chase, Wells Fargo, Ally Financial/GMAC and Citigroup. In addition to these five mortgage companies, there are nine smaller banks that may potentially be rolled into the agreement in the near future.
The total amount of the Robo-Signing Settlement is $25 billion which will be split up based on specifications outlined in the settlement agreement. If you think you may have been a victim of â€œrobo-signingâ€ during your foreclosure or someone you know, please contact me. The funds from the settlement will be distributed by the state attorney generalâ€™s office and varies state-by-state.
Although, this may be complete unrelated to the news of the settlement, Bank of America has announced this week new changes to their short sale procedures. The changes take effect this week and Bank of America claims they will shorten the approval time for a short sale from 45 days down to 20 days. The new policy also allows the short sale specialists handling the file to complete the tasks, such as document collection, valuations and underwriting simultaneously. This change is great news for homeowners and homebuyers looking to purchase a short sale â€“ and not just for Bank of America loans. Changes like this impact every other bank as demands are made for improvements across the board when it comes to a short sale approval.
If you or someone you know is upside down on their mortgage,
please give me a call to discuss the current market conditions - even if you
are not behind on your payments, a short sale maybe an option. I look forward
to hearing from you soon.
Luisa.Ramirez@remax.net or 623-687-7827
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