Friday, February 17, 2012

Robo-Signing Settlement Update

The following information is a few of the updated details of the Robo-Signing settlement as provided to myself and other CDPE’s (Certified Distressed Property Experts)

·         The five banks that are taking part in the current settlement are: Bank of America, Ally, Chase, CITI, and Wells Fargo. This settlement will not currently affect loans owned by other banks or Freddie Mac and Fannie Mae.

·         The $25 Billion settlement will be allocated as follows

o   $5 billion in $2,000 payments to borrowers who were fraudulently foreclosed on between Jan 1 2008 and Dec 31 2011

o   $10 billion allocated to borrowers who are delinquent on their mortgages now

o   $7 billion to assist homeowners in short sales, forbearance, relocating, and other alternatives

o   $3 billion allocated to help borrowers who owe more than the value of their home

·         Current Time line for this settlement

o   30 to 60 Days from March 1st 2012 Negotiators will select an administrator to handle the settlement logistics and fulfillment

o   6 to 9 months form March 1st 2012 Administrator with state attorney generals will identify homeowners who are eligible for cash payments and notify them by mail

o   3 years the settlement should be completed by the banks

·         Other notes of interest

o   Money will be distributed differently for different states with California receiving the most at $12 billion

o   Oklahoma is the only state that is not a party to this settlement as they will create their own agreement worth $18.6 billion.

I will continue to update information about the Robo-Signing settlement as more details become available.

If you have questions about your unique Real Estate situation I encourage you to contact me at bret.wilson@remax.net or 214-315-9465

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