Mortgage settlement leaves most homeowners to fend for themselves

[cal04]

http://bottomline.msnbc.msn.com/_news/2012/02/09/10365356-mortgage-settlement-leaves-most-homeowners-to-fend-for-themselves

The landmark $25 billion settlement reached by the federal government, 49 states and the nation's five biggest banks will provide long-overdue relief for hundreds of thousands of homeowners who have been struggling to navigate the mortgage mess created by lenders.

The wider impact for most homeowners, along with the housing market and economy, will be much more limited.

“You’re hardly skimming the surface,” said Paul Dales, a housing economist with Capital Economics. “It could help some people a lot, individually. But in terms of the big-picture, overall economy and housing market, it’s really just a drop in the ocean of the problem.”

(snip)
State and federal officials say the settlement could eventually help as many as a million households. Roughly 750,000 borrowers who lost their homes to foreclosure between 2008 and 2011 will get a cash payment of about $2,000.

But the vast majority of more than 11 million homeowners who owe more than their house is worth, along with six million who are in foreclosure or behind in their payments, won’t get help. That’s because the settlement applies only to loans held on the books of the five banks that agreed to settle.

[Angry Dragon]

1. If what read is true then I feel it is a stupid settlement

[MrCoffee]

2. It's another bailout disguised as a settlement

In exchange for civil immunity from lawsuits over robo-signing, the banks get a $20,000,0000,000.00 eraser to clean up their balance sheets with.

It's a vile piece of work being passed off as some big consumer victory.

[Mojorabbit]

3. +10000 nt