Some homeowners across America are gearing up for a conclusion to the case they’ve been fighting for over a year to secure their homes. Foreclosures were given out like government cheese after unsuspecting individuals were swindled by the snake salesmen loan officers that told them they could really afford the home of their dreams.
According to the Washington Post, of the forty states involved in the lawsuit against the Big Five (Bank of America, Wells Fargo, JPMorgan Chase, Citibank and Ally Financial) they have agreed to pay out “an estimated $37 billion as of Wednesday for lowering homeowners’ mortgage principal, refinancing, a reserve account, and checks to homeowners.”
The fraudulent activities the banks are accused of include “robo signing” off on loans that would put their clients in homes that they could not afford then drowned them in debt with a mortgage that far exceeded the worth of the home.
According to the report, New York has some 118,000 “underwater” borrowers and it is expected they will receive $136 million. California has more than 2 million underwater borrowers. They are expected to receive at least $430 million. Florida will receive $350 million and Texas $141 million.
The banks participation in robo signing, where foreclosures and mortgages were not properly verified and some employees “signed papers they hadn’t read or used fake signatures to speed foreclosures.”
Let’s hope that $37 billion will help to solve the downward spiral these homeowners were drawn into by the banks.
Read more on the report here.