State Attorneys Generals met in a Chicago hotel to discuss the proposed foreclosure settlement with large banks but in an anticipated move Delaware Attorney General rescinded his support for the settlement.
Though the settlement will not greatly benefit the people who have already lost their homes to wrongful foreclosure, it would be helpful to troubled homeowners. The settlement would allow for principle write-downs for underwater homeowners and more refinancing options.
The people who were subjected to wrongful foreclosure may get a small check for damages but will not get their homes back. Some of these homeowners along with their foreclosure attorneys were able to fight the banks but a large number of people saw their homes seized.
Delaware Attorney General Beau Bidden joined New York Attorney General Eric Schneiderman and California Attorney General Kamala Harris in opposition of the settlement. They object to a broad release of future liabilities that they banks are requesting if they agree to the settlement.
Without the support of all Attorney Generals, the exact amount of the settlement may be diminished.
This settlement may help future homeowners, but the ones facing foreclosure
at this time will need the assistance of a foreclosure lawyer to keep their homes.
Mortgage modification is one way to avoid foreclosure
but banks have been reluctant to give this option to delinquent homeowners. A foreclosure attorney
can be instrumental in negotiating a mortgage modification for a homeowner.