Santa Clarita Real Estate Update: One million homeowners may get mortgage writedowns in the U.S.

Cherrie & Zach
Published on January 19, 2012

Santa Clarita Real Estate Update: One million homeowners may get mortgage writedowns in the U.S.

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Santa Clarita has nearly 1000 foreclosed homes and only 200 of them are on the market as the banks try to slowly let them into the Real Estate Market. This trend is not slowing down in 2012 as the government tries different programs to help the housing industry:

 

WASHINGTON (Reuters) – About one million American homeowners would get writedowns in the size of their mortgages under a proposed deal with banks over shady foreclosure practices, U.S. Housing and Urban Development Secretary Shaun Donovan said on Wednesday.

The deal, which could be struck within weeks, would mark the largest cut in the mortgage load since the start of the credit crisis.

“We’re very close to a settlement that would both fix the servicing problems, but also help over a million families around the country stay in their homes and get help,” Donovan said at a U.S. Conference of Mayors meeting in Washington.

Talks between federal officials, state attorneys general and major banks to resolve allegations of “robo-signing” and other misconduct in foreclosures have dragged into their second year.

Donovan’s announcement came the same day that two big regional U.S. banks disclosed they had set aside funds related to mortgage servicing matters, a sign that lenders beyond the five largest mortgage servicers may join the expected settlement.

In exchange for between $20 billion to $25 billion in relief to distressed homeowners, the banks – Bank of America Corp, Wells Fargo & Co, JPMorgan Chase & Co, Citigroup and Ally Financial Inc – will put behind them potential government lawsuits about improper foreclosures and abuses in originating and servicing the loans.

Using Donovan’s estimate, the settlement could provide roughly a $20,000 reduction each for the one million borrowers.

 

Hopefully this actually helps homeowners here in Santa Clarita.If you are facing foreclosure arm yourself with info. Find the difference between foreclosure and short sales and your credit

If you would like to schedule a consultation please fill out the form below and we can help you assess your situation.

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Santa Clarita Real Estate Update: One million homeowners may get mortgage writedowns in the U.S.
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