Big Foreclosure Settlement May Cause More Foreclosures

The press is reporting on a huge settlement involving major banks and $25 billion. The figure is so large that it is almost incomprehensible. Here’s the story. When I read this, I wonder if any of these people – the lenders, the attorney generals, or the economists – really have a clue. Do any of them really have a crystal ball to determine that this is what it will take to turn around the real estate market? Everything that has happened so far, including the bank bailouts and the HAMP program have had their share of problems. It all remains to be seen how this will turn out and there will be years of litigation ahead for those homeowners who were involved with predatory lending schemes. For those homeowners in immediate danger of foreclosure, the settlement may not help at all and may actually prompt lenders to now move foreclosures ahead where they previously were stalled. New York property owners with mortgage loans should proceed with caution if they receive any notices from their lender. My firm’s clients often receive form letters from lenders that have no legal significance but which are misinterpreted as good news. Other times, clients receive incorrect letters or misleading notices. It is best to have an experienced attorney assist you. If you find yourself in this position or receive a notice regarding your property or settlement issues that you do not understand or which makes no sense, please call or e-mail us.