Two Attorneys General who are conduction the negotiation talks with the five largest mortgage lenders say they are prepared to sue if the talks collapse.
Illinois Attorney General Lisa Madigan and North Carolina Attorney General Roy Cooper are leading the talks along with other federal officials. They are hoping to set standards for the way in which the banks service loans and handle foreclosures. They are also asking for monetary relief for homeowners.
How monetary relief for troubled homeowners would be determined by each state but could include principle reduction. The five major banks have been accused of mishandling mortgage loans and foreclosures.
Homeowners facing seizure should employ a foreclosure attorney to help them negotiate with their mortgage lender.
The banks have offered to pay $5 billion to settle, according to Madigan that isn’t enough. “We’re going to try to get as much as we can because there are billion and billions of dollars of harm they have done to our entire economy, to our communities and to individual families,” she said. In an interview after talks, when asked if a deal with the banks is likely to reached, Madigan said she is “not positive.”
Major mortgage lenders are perceived to be the principle players in the crash of the real-estate market. Many homeowners have been hurt by the major banks, and must retain foreclosure lawyers to assist them on keeping their homes. Foreclosure attorneys can help the troubled homeowner modify their loans and possible keep their homes.
