The largest mortgage lenders in the US have been under investigation for their negligent foreclosure practices. Earlier this week the media reported that the talks of principle reduction have been taken out of negotiations with the Feds.
According Huffington Post’s Gordon Whitman, the Wall Street Banks incorrectly released the information that the 50 Attorneys General took the concept of principle reduction out of the emerging settlement over the unethical foreclosure practices of large banks. The report was initially released in The American Banker on May 11, which serves as the mouth-piece for Wall Street banks.
Principle reduction would allow a homeowner to reduce their mortgage loans by bringing their principle down to the actual value of their homes. The housing crisis caused many homes to drastically drop in their value. Many homeowners are paying off mortgage loans valued higher than their property is worth. This disparity on loan obligation and actual value was caused by the banks. Principal reduction would help the struggling housing market recover.
Those homeowners who are facing foreclosure would benefit from principal reduction or the employ of a foreclosure attorney.
The prevailing consensus is that the major mortgage lenders are at fault for the foreclosure crisis and with the aid of a foreclosure lawyer, a homeowner can hold negligent mortgage lenders accountable for their wrongful practices by hiring a foreclosure lawyer. A foreclosure attorney can give a person the chance to stay in their homes.
