America: Bankster's Paradise

[marmar]

from HuffPost:


On September 25, 2010, Monica and Ricardo Zapata should have been out celebrating their tenth wedding anniversary, or enjoying a candlelight dinner inside their five-bedroom home 30 minutes inland from West Palm Beach, Fla.

Instead, the couple packed and left their dream house behind. After two failed attempts at a mortgage modification and what the Zapatas describe as a suspiciously timed foreclosure sale, the bank managing their loan ordered the couple and their two children out. That day, the Zapatas lost more than $100,000 in mortgage payments. In the months that led up to the foreclosure and those that followed, they also racked up thousands of dollars in stress-related medical bills and family loans. Ally Financial, whose predecessor, GMAC, handled the Zapatas' mortgage, declined to comment on the details of the Zapatas' claims.

Now, under the terms of a government settlement with Ally and four other companies that allegedly mismanaged millions of loans and introduced fraud to the foreclosure process, nearly 2 million homeowners are slated to receive a negotiated measure of justice. About 1 million homeowners who owe their banks more than their homes are worth will be eligible for a principle balance or interest rate reduction, making it less likely that these people will default. Another 775,000 borrowers who lost their homes between 2008 and 2011 will be eligible for a one-time payment of up to $2,000.

Borrowers will not release any claims in exchange for a payment. And $3.5 billion will go to state and federal governments to be used to repay public funds lost as a result of mortgage servicer misconduct and to fund housing counselors, legal aid and other similar public programs determined by the state attorneys general. ..................(more)

The complete piece is at: http://www.huffingtonpost.com/2012/02/09/mortgage-settlement-foreclosure-fraud-robosigning_n_1260495.html